The Tokyo Stock Exchange (TSE) has partnered with NTT Communications to set up new ultra-low latency offering which connects to global financial service institutions in Hong Kong from the new colocation facility offered by the Japan Exchange.

The arrownet Global network service will now use NTT’s Ethernet leased line service and the Asia Submarine Cable Express (ASE), which offers 43mx latency between Hong Kong and Tokyo and less than 65ms from Singapore to Tokyo.

NTT said latency can be further reduced by connecting inside the Japan Exchange colocation facility or in NTT Communications’ new Financial Data Centre (FDC) in Hong Kong, where the ASE cable landing station and NTT Communications' global network node are located.

Tokyo Stock Exchange senior managing director Yoshinori Suzuki said the new it means global financial service institutions in Hong Kong will be able to directly access JPX Co-location and TSE’s systems for the first time.

“Arrownet-Global enables the global investors in Asia and across the world to access the JPX market from outside of Japan more easily and effectively by realizing a seamless connection with arrownet via NTT Communications’ wide global coverage,” Suzuki said.

“I hope that straightforward access to the JPX market will strengthen the value of TSE’s IT infrastructure and boost the liquidity of the JPX market.”

Arrownet has been offered by TSE since 2009 as a way for financial service institutions to connect with its trading and information systems and colocation racks in Tokyo. This new service opens it up to international markets, which TSE said strengthens the exchange’s value proposition while broadening its investor pool.

NTT Communications’ said by choosing to use the ultra-low latency ASE, TSE can bypass major seismic locations in the region to ensure the reliability of its service.

It said its Ethernet Leased Line service will connects the clients’ systems in Hong Kong all the way through to JPX Co-location and TSE’s system in Tokyo.