Author Paul Holmes
Dot Commodity, Inc. (Dot), Japan’s premier commodity futures broker, is pleased to announce the launch of a low latency connectivity service to the Tokyo Commodity Exchange (TOCOM) for Trading Technologies’ X_TRADER(R), a trading platform for professional traders, from July 30, 2012. Dot has selected KVH Co., Ltd. (KVH) as the service provider for the new low-latency connectivity environment, and will leverage KVH’s proximity solutions, a combination of data center, network and managed IT services to achieve ultra low latency at one-tenth or less of existing TOCOM connectivity services.
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Dot will install dedicated servers, Autospreader Strategy Engine (ASE) and Algo Strategy Engine (Algo SE), at the KVH proximity hosting data center to enable the order functionality of X_TRADER(R). This will provide traders with ultra low-latency order execution through a dedicated server within the same location. KVH’s low-latency connectivity environment and proximity solutions will also be available for other trading platforms through Dot.
The expansion of its low-latency services will allow Dot to address the growing needs of High Frequency Trading (HFT) markets and accelerate business from professional traders and prop firms in Japan as well as other Asian markets. Commodity futures trading markets have become increasingly more important for financial markets as global trading volume continues to grow with frequent price fluctuations in crude oil, gold, and grains. Also, the HFT environment in Japan and Asia is rapidly evolving with major exchanges currently introducing next-generation trading platforms and revising their trading schemes.
KVH, a TOCOM designated proximity service vendor, has developed a proximity hosting environment suited for ultra low latency trade execution from a single point to multiple exchanges using its high-speed optical fiber networks and data center strategically located in proximity of the major exchanges. Leveraging KVH proximity solutions, Dot can rapidly and efficiently provide traders with the lowest latency connectivity environment in Japan.