Tokyo Stock Exchange adds new features to its stock trading system
The Tokyo Stock Exchange has upgraded its cash share trading system. This is the fourth generation of the Arrowhead solution, which first went live in 2010. As part of the upgrade, the specialist team improved several vital functional elements.
One of the most significant updates was a new auction close function. This was in response to increased demand for end-of-day trading. Within this session, the exchange now accepts orders for 5 minutes from 15:25. After the designated period, the closing auction begins, where the following rules apply:
– orders may get executed even if they do not comply with the above rules;
– they get executed at the upper or lower limit of the price range;
– a number of conditions must be present for a trade to get executed.
This approach increases the transparency of closing prices.
In addition, the updated version includes a Market Data Service, or Market by Order. This is responsible for distributing data for each order. The functionality provides detailed information that complements the aggregated price data.
For institutional investors, the new version includes a bulk order cancellation feature. This allows multiple orders to be cancelled at the same time, increasing convenience and responsiveness.
The Tokyo Stock Exchange has also worked to expand trading opportunities for platform participants. The TSE has extended the market’s opening hours by 30 minutes. It is now open until 15:30.
Technology features
The system’s new version has an increased storage capacity, which means that three times as much data can be stored. This has been made possible by using several servers in parallel, which can swap between each other. Specialists have also taken care to minimise the risk of system failure. To this end, the Tokyo exchange teamed up with Fujitsu. Fujitsu provided high-speed technology and the latest software. Thanks to this solution, transaction information processing takes place in a fraction of a second. This increases productivity and reduces system response time.
Another improvement is the reduced recovery time after a system failure. Arrowhead has a new monitoring dashboard to visualise the processes and services provided by the software.
To structure transactions, the exchange has dedicated a separate cloud storage space on the Japan Exchange Group platform for business intelligence data. This separation of information improves security and simplifies analysis processes.
Tokyo Exchange plans to improve the system in the future to make it even more convenient for market participants. Particular attention will focus on improving the speed of order execution. Innovations will also include enhancing user interfaces and integrating new technological solutions. We are talking about artificial intelligence to analyse market data and automate operations.
