Credit Suisse claimed that AES Velocity can increase alpha for latency-sensitive strategies and help algorithmic trading strategies to perform efficiently by reacting quickly to market conditions. The system also has built-in risk, compliance and trading limit checks.
Credit Suisse has located its trading servers on-site at the Tokyo Stock Exchange building, taking up the opportunity to co-locate that was extended to brokers as part of the TSE’s efforts to increase trading efficiency, which also involved the introduction of Arrowhead trading system.
Clients that place their trading engines within Credit Suisse’s ‘racks’ to make use of AES Velocity and trade through the Credit Suisse’s direct access to the TSE are now able to achieve oneway latency as low as 200 microseconds. By comparison, the typical human reaction speed is around 150 milliseconds, or 750 times slower.
Christina Makiguchi, head of AES for Japan at Credit Suisse, said: “This breakthrough confirms Credit Suisse’s position at the forefront of electronic trading in Japan. Ultra-fast direct market access, along with much quicker execution speeds on the TSE since the introduction of Arrowhead, makes trading Japanese equities via Credit Suisse an even more attractive proposition to domestic and global investors.”
