NTT America touts transpacific low-latency data services

DECEMBER 1, 2010 -- NTT America, a wholly owned U.S. subsidiary of NTT Communications Corp. says that it has landed customers -- including “major” commodity exchanges, investment firms, and hedge funds – for its low latency networking services across the Pacific Ocean.

Dec 1st, 2010

DECEMBER 1, 2010 -- NTT America, a wholly owned U.S. subsidiary of NTT Communications Corp. says that it has landed customers -- including “major” commodity exchanges, investment firms, and hedge funds – for its low latency networking services across the Pacific Ocean.

NTT America is offering low-latency off-the-shelf services between Chicago and Tokyo, and New York City and Tokyo. These data routes are particularly useful for high-frequency trading (HFT) and algorithmic trading for the financial markets, says the service provider. They became available through NTT America via NTT Communications’ acquisition of Pacific Crossing and the PC-1 transpacific cable system (see “NTT Communications completes acquisition of Pacific Crossing Ltd.”).

“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.”

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.

“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. “

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