November 1, 2010: TFX Appoints KVH as Proximity Service Vendor for Interest Rate Futures Market – Supporting Overseas Remote Members with Low Latency Connectivity Needs
Press Release: November 1, 2010
Tokyo Financial Exchange Inc. (headquartered in Chiyoda-ku, Tokyo, President: Shozo Ohta, hereinafter referred to as “TFX”) and KVH Co. Ltd (headquartered in Minato-ku, Tokyo, CEO: Richard Warley, hereinafter referred to as “KVH”) today announced that TFX selects KVH’s low latency network connectivity and proximity hosting services to power the TFX Proximity Service supporting its interest rate futures market. Having recommended KVH Tokyo Data Center as the ideal hosting environment to its trading participants since 2008, TFX has now officially appointed KVH as its proximity service vendor, recognizing KVH for its ultra low latency and high quality, fully redundant network and cabling within its own data center. Leveraging these key assets and capabilities from KVH, the TFX Proximity Service will enable overseas remote trading members to access TFX’s system from a highly reliable hosting environment with ultra low latency connections.
TFX has been pursuing various initiatives to increase the number of members utilizing its world class trading systems, which boast one of the world’s highest order processing performances. Obtaining its first remote trading member in September 2010, TFX has been the first Japanese exchange to admit trading membership of an overseas investor with no office in Japan. To further promote overseas remote membership and participation by domestic investors, TFX believes high quality and low latency network connections to be essential factors of growth and looks to KVH to lend its strengths in these key areas.
Combining high-speed optical fiber networks with data centers located close to major domestic exchanges, KVH proximity services provide a complete hosting environment well-suited for ultra low latency trading transactions with multiple exchanges from a single location. KVH also offers ultra low latency access over its global Ethernet network to the world’s major financial centers, leveraging its own network points of presence in Hong Kong and Singapore as well as a global partnership with COLT in Europe. As TFX’s proximity vendor, KVH proximity services provide a cost-effective and flexible solution encouraging more participants in financial and futures trading markets to connect to other exchanges via a single, managed hosting environment, thus increasing liquidity and driving growth.
Dr. Zhongmin Guo, Vice President, Telecom and International Business Unit of KVH noted, “We are very pleased that TFX has selected our services for TFX’s interest system-centered proximity services. As currency and interest continue to gain in importance, we are optimistic that there will come even more opportunities for KVH to support TFX in expanding its position in the market. As a market leader in providing ultra low latency connectivity and proximity hosting in Japan, KVH plans to maintain its focus on the needs of electronic traders, continuously improving its service performance to help energize the trading market.”
About Tokyo Financial Exchange (TFX)
Tokyo Financial Exchange Inc. (TFX) is an exchange specialized for financial derivative products and its trading members consist of 72 major financial institutions around the globe. TFX offers variety of short term interest rate (STIR) futures and options products for institutional investors and Exchange FX Margin contracts mainly for retail investors in Japan. The trading volume of all products during fiscal 2009 was 83.7 million and it is expected to grow further in 2010, reflecting significant increase in the trading volume of Click 365. Also, by leveraging its knowledge and expertise acquired through Click 365, TFX will introduce “Click kabu 365,” Exchange-traded Equity Index Margin contracts this month.
KVH was established in Tokyo in 1999 by Fidelity Investments as a Japan focused IT/communications service provider. KVH offers integrated communications and IT management solutions that include managed services, data center services, professional services, data networking, internet access, and voice services to business customers. KVH operates the lowest latency network in Japan, and with over 450 financial services customers, is the leading provider of ultra low latency network and proximity hosting solutions to the high frequency trading community in Tokyo and Osaka. KVH also offers low latency connectivity services between major financial markets in the Asia/Pacific region and the US, including Tokyo, Chicago, New York, Singapore, Hong, Kong, Seoul, Shanghai, and Sydney. More information on KVH can be found at www.kvh.co.jp/en/