HomeCase StudiesProprietary trading firm

Proprietary trading firm

A better, more profitable trading experience through JPX matching engine proximity

A trading firm grows its business in Asia supported by Colt connectivity and co-location

This US-based proprietary trading firm conducts around a million trades every day on exchanges all over the world. To maintain exceptional trading performance, it colocates infrastructure as physically close to critical matching engines as possible, and connects to other.

In Japan, the firm used to trade through a single broker. But rapid growth in the volumes of equities, derivatives and other instruments being traded soon led it to seek improved pricing and execution using multiple brokers. That meant establishing infrastructure and connectivity in the region with the help of a local partner, as it has no legal entity in Japan.

The firm chose Colt to meet its colocation, connectivity and market data needs — a combination that most other providers in the region can’t offer. As well as being broker neutral, Colt has a strong local presence and the language skills and regulatory knowledge to help customers do business in Japan.


1,000,000 – this trading firm conducts around a million trades a day globally


A managed solution underpins trading success Colt provides the trading firm with a managed solution that includes:

  • Premium colocation at the @Tokyo CC2 data centre on the same floor as the Japan Exchange Group (JPX) matching engine, meeting the trading firm’s proximity requirements. A Colt-provided 10Gbps JPX arrownet connection cross-connects the firm’s infrastructure to the JPX trading engine.
  • Two 1Gbps inter-data-centre connections between CC2 and TY3, giving the firm high-speed access to one of Asia’s biggest FX liquidity centres. To provide resilience in the event of an earthquake, the connections take completely separate routes through Colt’s extensive Tokyo metro area network.
  • Additional low-latency point-to-point wave services connecting CC2 with exchanges in Hong Kong,Singapore, South Korea and Australia to support the
    firm’s trading activity across the region.

JPX has become an important market for this customer,which continues to expand its business throughout Asia. Like any proprietary trading firm, it makes decisions rapidly and always seeks a fast time to market for new and expanded connectivity. With the help of its metro area network, Colt can respond to the firm’s requirements with speed and agility, and consistently meet its always pressing deadlines.

JA-Images-07
COMPANY NAME

Proprietary Trading Firm

INDUSTRY

Financial Services

CHALLENGE

To establish and quickly expand a trading presence in Japan and across Asia

COLT SOLUTION

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