The Tokyo Stock Exchange successfully launched a fast trading system on Monday to better compete with major global rivals in the growing field of automated trading.
The $140 million "Arrowhead" system was launched without issues, traders said. A series of technical problems in trading has tarnished the exchange’s reputation in recent years. After being known for years as one of the slowest leading exchanges in the world, Tokyo can now almost stand alongside New York and London. The new system processes trades 600 times faster than before and can handle much larger volumes.
The goal of the modernization is to attract new business from hedge funds and other professional investors, who increasingly rely on sophisticated automated trading strategies."I believe the new system has the potential to significantly reshape trading not only in Japan but also in Asia," said Neil Katkov from the consulting firm Celent."There is a possibility that the exchange will attract more trading, new types of trades, and the attention of new types of investors, particularly hedge funds," he added. (H)
