SMX and TOCOM deploy KVH-SingTel low latency network solutions

KVH and Singtel partnership offer ultra low-latency capability expansion for improving liquidity in and SMX and TOCOM.

KVH Co., Ltd. (KVH) and Singapore Telecommunications Limited (SingTel), market leaders in low latency services in Japan and Singapore respectively, announced on Monday that Tokyo Commodity Exchange (TOCOM) and Singapore Mercantile Exchange (SMX) will provide KVH-SingTel’s low latency network solutions to market participants. This will enable the two exchanges to facilitate an ultra low-latency and fully redundant network service between Japan and Singapore.

SMX and TOCOM have been discussing potential collaborative opportunities to enhance liquidity on both the Japan and Singapore commodity markets. With the KVH-SingTel’s low latency network, market participants can simultaneously access both exchanges with the highest speed and scalability currently available for high-performance trading.

In global financial markets, Singapore is considered along with Tokyo to be an important center for traders from overseas. KVH extended its global Ethernet network into Singapore in April this year to support low latency needs in the trading community through the partnership with SingTel.  KVH’s Tokyo Data Center has been endorsed by TOCOM as its access point location and proximity hosting provider since 2008. The expansion of ultra low-latency connections between Tokyo and Singapore opens another opportunity for global market participants, according to a SingTel report.

Mr. Tadashi Ezaki, President and CEO of TOCOM said, “As Asia’s leading futures exchange, TOCOM is implementing measures to reach out to the global investment community.  Through these initiatives, market participants would be able to enjoy broader access and trade more products on various markets with more arbitrage opportunities and increase liquidity.  We expect KVH to continue supporting our endeavors to establish a strong foothold in Asia and other global financial and commodity markets.”

Mr. Thomas McMahon, CEO of SMX said, “SMX views the alliance as an important vehicle to unify the Asian derivatives landscape. Asia will be adding to the global benchmarks in terms of trading prices and indices. One fundamental element in building a comprehensive product range in the region lies in collaboration and in harnessing technology between exchanges. The appointment of KVH-SingTel as a connectivity point between Japan and Singapore enables both parties to deliver on this promise.”

Ms. Miyuki Suzuki, President and CEO of KVH said, “We are very pleased that both TOCOM and SMX have partnered our services for ultra low-latency connections between Japan and Singapore.  KVH offers ultra low latency access to multiple exchanges, brokers and market data vendors from a single location as an ideal global High-Frequency Trading environment in Japan.  We are expanding its capability to Singapore, Hong Kong and other key financial cities in Asia to support rapidly growing low-latency needs in the market.”

Mr. Lee Kai Hock, SingTel’s Vice President of Business Marketing, said, “Increasingly, trading companies are turning to high-speed network services to gain a competitive edge in the Asian markets.  SingTel’s proximity hosting and ultra low latency services cater to this rapidly growing demand and enhance the high-speed trading capabilities of companies in the region.

“Through the innovative use of infocomm technologies, we seek to open the doors to more exciting growth opportunities for trading companies and further strengthen Singapore’s position as a global financial hub.”