NEW YORK--(BUSINESS WIRE)-- NTT America, a wholly owned U.S. subsidiary of NTT Communications Corporation, today announced that it is supplying major commodity exchanges, investment firms, and hedge funds with low latency routes available for transpacific data connections. NTT America is now offering off-the-shelf services between Chicago and Tokyo, and New York City and Tokyo, as well as industry leading service level agreements (SLAs), including some of the lowest transpacific latency available in the industry. These data routes have proven critical in the success of high-frequency trading (HFT) and algorithmic trading for the financial markets and are available through NTT America via NTT Communications’ acquisition of Pacific Crossing and the PC-1 transpacific cable system.
“CME Group requires the highest level of network services that offer the lowest latency routes and most stringent SLAs available in order to meet the real-time demands of our customers around the world,” said Bryan Durkin, Managing Director and Chief Operating Officer of CME Group. “Working with NTT Communications will help us to continue to improve our service offerings by providing our customers throughout Asia dedicated connections from Tokyo to Chicago.”
Alternative trading systems for commodities, stocks and other derivatives were approved by the U.S. Securities and Exchange Commission in 1998. HFT is an alternative trading system that elevates electronic trading to the next level in terms of both speed and frequency. HFT requires many large, high speed computers, which are collocated often in close proximity to major exchanges, that are capable of transmitting millions of orders per second, making every millisecond (1/1000th of second), absolutely critical to the profitability of the trades and the firms.
According to the Aite Group, in 2009 approximately 2 percent of the total financial companies in the United States (about 400 companies) participated in HFT activities, accounting for about 70 percent of the U.S. securities trade volume. NTT America’s low latency routes between Chicago and Tokyo and New York City and Tokyo provide the data connections critical to the success of international investment firms and exchange operators.
“Investment firms, exchanges and commodity traders have developed some of the most sophisticated high-frequency trading systems in the world,” said Erin Dunne, Director of Research Services with Vertical Systems Group. “These businesses require the lowest latency routes and highest quality collocation facilities possible to ensure that their thousands, if not millions, of transactions per second can be executed at the desired time and strike price. With the infrastructure assets NTT Communications offers in-house, they are positioned to deliver the network services these financial firms require. “
Dunne continues, “The CME Group, which operates the Chicago Board of Trade (CBOT), the Chicago Mercantile Exchange (CME), the New York Mercantile Exchange (NYMEX) and the Commodity exchange (COMEX), is a perfect example of such an organization requiring the lowest latency networks for the benefit of their constituency.”
Additional information regarding NTT America’s low latency network offerings can be found online: http://www.us.ntt.com/en/products-services/managed-private-networks.html
About NTT America
NTT America is North America’s natural gateway to the Asia-Pacific region, with strong capabilities in the U.S. market. NTT America is the U.S. subsidiary of NTT Communications Corporation, the global data and IP services arm of a Fortune Global 500 telecom leader: Nippon Telegraph & Telephone Corporation (NTT). NTT America provides world-class Enterprise Hosting, managed network, and IP networking services for enterprise customers and service providers worldwide. For additional information on NTT America, visit us on the Web at www.us.ntt.com.
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About NTT Communications Corporation
NTT Communications provides a broad range of global networks, management solutions and IT services to customers worldwide. The company is renowned for delivering reliable, high-quality security, hosting, voice, data and IP services; its expertise in managed networks; and its leadership in IPv6 transit technology. NTT Communications’ extensive infrastructure includes Arcstar™ Global IP-VPN and Global e-VLAN, as well as a Tier-1 IP backbone reaching more than 150 countries in partnership with major Internet service providers, and secure data centers in Asia, North America, and Europe. NTT Communications is the wholly-owned subsidiary of Nippon Telegraph and Telephone Corporation, one of the world’s largest telecoms with listings on the Tokyo, London and New York stock exchanges. Please visit www.ntt.com/index-e.html.
NTT, NTT Communications, and the NTT Communications logo are registered trademarks or trademarks of NIPPON TELEGRAPH AND TELEPHONE CORPORATION and/or its affiliates. The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago. NYMEX and New York Mercantile Exchange are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other referenced product names are trademarks of their respective owners. © 2010 NTT Communications