Avelacom opens low latency highway to Japan’s equities, commodities, derivatives

Rick Steves

“We already own the lowest latency routes to and from Tokyo. This gives us a head start in the provision of JPX market access solutions for financial services firms, both inside and outside of Japan.”

Avelacom has launched colocation and network services for Japan Exchange Group (JPX), thus enabling financial services institutions to directly access JPX’s exchanges and markets in cash equities, commodities, and derivatives.

The JPX’s infrastructure – comprising the Tokyo Stock Exchange (TSE), the Osaka Exchange (OSE), and the Tokyo Commodity Exchange (TOCOM) – is now an integral part of Alevacom’s proprietary, ultra-low latency network.

Japan is one of the most strategic markets for Avelacom

Aleksey Larichev, Chief Executive Officer of Avelacom, commented: “Our infrastructure setup within JPX is a significant milestone for our development as it supports our growth in Japan. Among our clients are global banks, hedge funds and proprietary trading firms, and all of them increasingly want to be able to trade multi-asset markets such as JPX’s financial instruments.

“We already own the lowest latency routes to and from Tokyo. This gives us a head start in the provision of JPX market access solutions for financial services firms, both inside and outside of Japan.”

Avelacom considers Japan to be one of its most strategic markets and, for that reason, the connectivity solutions provider has increased its presence in Tokyo over the past four years.

The firm’s expansion in Japan included an authorization from Japan’s authorities to provide telecommunications services, the opening of a branch office in Tokyo to be able to serve clients in the Japanese language, the launch of more points-of-presence (PoPs) in several data centers in the country, as well as the metro network in Tokyo.

FinanceFeeds webinar: Expert panel to discuss market data for multi-asset brokerages  

Acuiti-Avelacom report shows positive outlook for Q1 2022

A recent Acuiti report produced in partnership with Avelacom found that over half of proprietary trading firms now have most staff back in the office on a regular basis, with firms in the UK more prone to work from home than those in the US.

42% of senior proprietary trading executives surveyed reported a drop in productivity when working from home during the Covid-19 pandemic.

The document also points to US equity options exchange MIAX Emerald as the fastest growing exchange by QoQ volume growth in the inaugural Avelacom Exchange Growth Index: the operator grew volumes by 70% QoQ.  Shanghai Stock Exchange and Shenzhen Stock Exchange came in second and third.

NYMEX’s Micro WTI Crude Oil future was the most successful new contract launch followed by Argentinian exchange MATba ROFEX’s Discount National Treasury Bills future.

The time taken to develop traders is the biggest barrier to growth for proprietary trading firms, with 54% of respondents from the Acuiti proprietary trading network citing this as a major barrier to growth. Separately, proprietary trading executives are positive about the next three months -65% said they were either quite or very positive.

US-based proprietary trading firms are hiring at a faster pace in Asia than in Europe. Overall, 328 roles are being advertised in Asia by 58 of the major proprietary trading firms globally compared with 309 in Europe. North America is still the biggest market for hiring with 789 roles on offer.

 

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