Aite Group Highlights the Need for Technology
Focused Brokers Following TSE arrowhead
The ability to deliver liquidity, access and technology-driven solutions will be key
March 08, 2010 07:03 AM Eastern Time
SAN FRANCISCO--(EON: Enhanced Online News)--An independent report from Aite Group examines the
overall capabilities of Tokyo Stock Exchange’s arrowhead, and its potential impact on the evolution of the
competitive landscape in the Japanese equity markets. The study, commissioned by Tora Holdings, Asia's leading
provider of advanced trading technology and financial services, highlights the need to utilize brokers with a strong
commitment to investing in the latest technology infrastructure in order to capture the benefits offered by arrowhead.
“Launch of arrowhead: The Need for a Next-Gen Broker in Japan” is available for download at
For this report, Aite Group conducted interviews with some of the most active buy-side investors and largest sell-
side firms in Japan. They also spoke at length with the Tokyo Stock Exchange directly. Key changes to daily trading
will be the following:
l arrowhead provides significantly lower latency, reducing order acknowledgements from several seconds to
under 10 milliseconds.
l For the first time, the TSE’s trading participants will be offered co-location (proximity) access. In turn,
brokers can then provision access to their trading clients.
l Distribution of market data will be vastly improved with the availability of deeper market depth.
l Implementation of rule changes including reduction in tick size, modifications to daily price limits and
introduction of sequential trade quote.
The short term impact of these changes will be most important to high frequency traders. Long term, the importance
of advanced trading infrastructure will increase as more sophisticated trading methods become more prevalent.
“With the launch of arrowhead, the TSE is revolutionizing Japan’s equities market, br