Tokyo Stock Exchange Puts Price Tag on Co-Location

Tokyo Stock Exchange (TSE) has made its decision on detail contents and pricing of its "co-location service" at TSE primary site. Co-location service is designed to further enhance market convenience for investors and trading participants. On August 26, 2008, the TSE had been in discussions with NTT Communications Corporation, which operates a data center at the TSE arrownet access point, about providing customer connectivity service at the access points. Still, NTT Communications and TSE have examined feasibility of that service. This time, TSE has decided to roll out co-location service only at its primary site.

Co-Location service, derivatives trading system (futures) and current market data distribution system for cash equities and futures will be available from July 2009, in addition to Tdex+ (options). Although TSE said that the maximum cooling per rack cabinet would be 4KVA and physical access to TSE primary site for introduction and maintenance for devices at co-location site would be completely prohibited, TSE decided that more than 4KVA cooling per rack and access by introduction and maintenance vendor at TSE primary site would be allowed and other necessary measures have been taken.

Pricing for co-location service is composed of "co-location service charge" and "co-location network charge." Co-location service charge consists of monthly basic charge, power and cooling charge and initial costs such as electricity construction fee and service introduction fee. Co-location network charge is for connection between TSE Systems and user data center via the user's co-location rack and order line (unicast), market data line (multicast) and external connection fee. TSE will revise co-location service charge depending on any changes. Service desk will start its operation in January 2009 and a user can apply for TSE co-location service between January and February 2009, and may start installation of its devices at TSE primary site from May 1, 2009.