The stock exchanges of Asia has invested hugely in new systems of stock exchange. The reason behind the heavy investment is to attract high frequency traders. The another reason is to fend off the competition which is expected from alternative platforms like dark pools.
The report below shows some steps which is taken by Asia’s Bourke operators. TSE (Tokyo stock Exchange) has launched a Arrowhead stock trading system which is worth $140 million. The Arrowhead was launched during the month of January allows trades within 5 milliseconds. The previous system used to execute a trade per 3 seconds at present the new system has changed the speed.
The stock price distribution has even changed due to the new system. Hong Kong Exchanges and Clearing (HKEx) has launched AMS3.8 by the year end of 2010 and 2011. The system can process 15,000 orders per second previous system had 3,000 orders per second. The new system will improve the connectivity to China and prevents the use of alternative platforms.