Making the Tokyo Stock Exchange a Non-stop System

The Tokyo Stock Exchange Is a Vital Component of the Global Economy

As recently as a generation ago, share trading almost always required brokers standing on the floor of the stock exchange taking orders by phone. These days, of course, anybody, young and old, can trade online with ease by accessing a wide range of sophisticated trading solutions such as automated ordering programs, and electronic trading now accounts for the bulk of share trades.

The stock exchange is the institution charged with the coordination of equity trading activity. The Tokyo Stock Exchange is the largest financial instruments exchange in Japan, and the third-largest in the world after New York and London. It has played a central role in the global economy since opening in 1949.

The Tokyo Stock Exchange boasts an extremely stable and reliable trading system, which has provided continuous service without a single major interruption for the last five years. This record contrasts favorably with overseas stock exchanges, which have suffered more than 100 documented failures over the three-year period between 2012 and 2014 (and these are only the known incidents).

Transitioning to a More Powerful and User-friendly System without Compromising Reliability

Fujitsu has been involved in all aspects of the “arrowhead” trading system at the Tokyo Stock Exchange, from hardware to applications. The recent introduction of “new arrowhead,” which combines faster order processing with improved stability, resulted in a significant performance boost.

New arrowhead is primarily designed as a non-stop system that operates continuously without interruption. In an age where stock exchanges around the world are locked in competition on the speed of service provided, operational stability and reliability are increasingly important aspects of system performance. New arrowhead is a world-class system that provides enhanced functional convenience and processing power without compromising stability or reliability.

Processing power has nearly doubled and order response times have been more than halved from a millisecond to less than 500 microseconds. With order volumes continuing to rise, the maximum number of orders per day is expected to double from 137 million to 270 million, and the number of orders per second will go from between 30,000 and 40,000 to more than 50,000.

New Feature to Prevent Repetitive Computer Errors

Automatic computer-generated ordering is increasingly the norm these days, but there is a risk of computer error causing an order to be endlessly repeated that could impact on the global economy. New arrowhead is equipped with a kill switch that prevents the system from endlessly repeating a computer error. The kill switch automatically cancels any order that has not been executed, including orders that have been placed. This prevents a minor error in an automated ordering system from turning into a major error at the hands of a stockbroking firm.

New arrowhead is one of only a handful of stock exchange systems around the world with kill switch functionality. It is hoped that this will further enhance the stability and reliability of the Tokyo Stock Exchange on the global stage. Fujitsu will continue to work with the Tokyo Stock Exchange to improve the reliability of its non-stop trading system.