Tokyo exchange ditches slow computer system
The Tokyo stock exchange is getting ready for the new year by replacing its existing slow computer system that is used by the trading system. The exchange is hoping that the new Arrowhead system built by the Japonese company Fujitsu.
Over the past few years the exchange has lost volume since its system could not cope with the high volume of electronic traders associated with hedge fund companies that trade millions of dollars to benefit in small margins.
The old slow running computer system is being replaced at a cost of $145 million. The new system can handle 46 million trades per day vs the current 7 million per day. Also the response time will be about 600 times faster which means trades will happen in 5 or 6 milliseconds vs the current two or three seconds.
