Trading SGX Nikkei from Tokyo

[aaronxie 10]

Hi,

 

I am based in Singapore, and trade Nikkei both on OSE and SGX.

 

I am wondering if there are any traders based in Tokyo who trade SGX Nikkei? I'm quite curious as to how fast the speed of connection is?

 

My TT price feed can lag by as much as a second during frantic price moves. So I'm curious to know how the situation is over on the other side of the fence.

[Soultrader 12]

Traded it almost 2 years ago on SGX. Never had an issue.

 

TT problems exist because TT is not a direct market data vendor. So they retrieve market data including market depth data from a third party source. Obviously this is the delay. This is one of the most frequent comments I hear regarding TT.

 

To overcome this, use top of the line pc as well as a super fast internet line.

[aaronxie 10]

Always great to meet a fellow Nikkei trader!

 

I'm trading on a leased line and from an arcade. I can't recall if TT takes its OSE price feed straight off from OSE or from the Japan counter-party broker (NewEdge / Calyon). My orders take 25 milli-second to hit SGX and 50 milli-seconds to hit OSE.

 

The reason I'm asking for how quick TT's connection is to SGX from Tokyo is because I want to trade from Tokyo (and explore exciting Japan!), wondering how feasible that would be.

 

Have you traded on SGX using TT before?

[Soultrader 12]

Always great to meet a fellow Nikkei trader!

 

I'm trading on a leased line and from an arcade. I can't recall if TT takes its OSE price feed straight off from OSE or from the Japan counter-party broker (NewEdge / Calyon). My orders take 25 milli-second to hit SGX and 50 milli-seconds to hit OSE.

 

The reason I'm asking for how quick TT's connection is to SGX from Tokyo is because I want to trade from Tokyo (and explore exciting Japan!), wondering how feasible that would be.

 

Have you traded on SGX using TT before?

 

Ahhhh.... you need to speak with Newedge. They use Frontiers for order routing which is slow and they are looking to replace it. The problem with your model compared to mine is this:

 

You > Execute > ISV server > Newedge server (Frontier) > Exchange

 

Me > Execute > ISV server located at the exchange

 

Notice how I skip a step as my orders go directly to the exchange. Ive traded through Newedge Frontier before for various products, Topix, JGB, Nikkei OSE and SGX, and various TOCOM products. I must say it is rather slow.

[aaronxie 10]

Aaahh. The advantages of trading from within Japan.

 

I would love for my OSE orders to hit the exchange directly, but there are trading regulations that restrict foreign clearers from connecting to OSE directly. But I do hear with memberships being granted by OSE by year end, foreign clearers will be able to connect directly.

 

Do you reckon that I'll finally be able to match your round trip time with this new infrastructure set-up?

 

I hate Frontiers, it's clunky and outdated. But every clearer in Singapore goes through Newedge, so it's a grit your teeth and bear with it issue over here.

 

Haha, I can't believe you have an order entry platform faster than TT! I'm curious, which company managed to finally beat snobbish TT?

[Kiwi 16]

I'm curious James. I always thought you were a market profile trader, and thus, fairly unconcerned about user to market speed issues. Where am I getting that wrong?

[MidKnight 12]

Since when did TT start offering OSE? Their website has for several years (and still does today) say it is a planned supported exchange for the future.

[Soultrader 12]

I'm curious James. I always thought you were a market profile trader, and thus, fairly unconcerned about user to market speed issues. Where am I getting that wrong?

 

Sure for some markets.. less for the local markets. I trade on patterns and vwap for Kospi, more order flow and momentum on Nikkei. I stopped using mp on Nikkei early due to gaps that caused alot of confusion for me when starting out.

[Soultrader 12]

Since when did TT start offering OSE? Their website has for several years (and still does today) say it is a planned supported exchange for the future.

 

I dont think they do yet although they offer SGX? I used CQG through Newedge Frontiers.

[aaronxie 10]

James, what are the more popular professional order entry platforms day-traders use in Japan?

 

Are you aware if a foreigner can start up a proprietary trading company in Japan? Or do I have to rope in a Japanese?

[MidKnight 12]

Thanks James, that is what I thought. When reading the initial post, it sounded to me like TT might have _finally_ sorted out getting into Asia a little. Sadly that remains not the case

 

I wish either TT or zenfire would start to make some head way in this area.

[Soultrader 12]

James, what are the more popular professional order entry platforms day-traders use in Japan?

 

Are you aware if a foreigner can start up a proprietary trading company in Japan? Or do I have to rope in a Japanese?

 

GL Trade has the number one market share amongst professionals. A foreigner can start a prop trading company... its a matter of having capital to meet the Japanese regulatory requirements and registered with the FSA or JSDA. (not too sure which regulatory agencies you need to register with) If you are interested, pm me regarding it as I have helped a few foreign entities launch their business in Japan.

[Soultrader 12]

Thanks James, that is what I thought. When reading the initial post, it sounded to me like TT might have _finally_ sorted out getting into Asia a little. Sadly that remains not the case

 

I wish either TT or zenfire would start to make some head way in this area.

 

Its a bit complicated here for ISV's to gain access to our exchanges. First you need lines that are costly without any client demand. Second, ISV's need to find a FCM who will sponsor them to connect to each individual exchange.

[MidKnight 12]

How can you say no client demand? Nikkei, Kospi, HSI all trade great volumes

 

Better than many of the exchanges that TT currently offer, such as Sydney Futures Exchange, Montreal Climate Exchange (???), Montreal Exchange (??), Tokyo Commodity Exchange (?)

 

The mind boggles as to why these exchanges have been prioritized for support.

[Soultrader 12]

How can you say no client demand? Nikkei, Kospi, HSI all trade great volumes

 

Better than many of the exchanges that TT currently offer, such as Sydney Futures Exchange, Montreal Climate Exchange (???), Montreal Exchange (??), Tokyo Commodity Exchange (?)

 

The mind boggles as to why these exchanges have been prioritized for support.

 

Hi MidKnight... could be that TT does not have enough of its own clients to justify investing into Japan or perhaps they can not find a FCM who would sponsor them into OSE/TSE. I am not sure what the exact reasons are. TT could have access to TOCOM through the Newedge Frontier system. This saves costs as they only need to invest in lines to Newedge. They could technically go down this route for other exchanges that Newedge provides but then the end user (trader) can only trade if they have an account with Newedge.

 

There are many reasons why TT has not yet entered into TSE/OSE. Legal reasons? Lawsuits pending? No clue....

[MidKnight 12]

I hear ya James, I'm just bitter because I would like these things available for us

[moka 10]

Is it possible to arbitrage between SGX and OSAKA nikkei futures

Via brokers in Singapore or Prop firms ?