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TOCOM Deploys KVH's Industry Leading Ultra-Low Latency Networks between Tokyo and CME's Data Center
[June 13, 2014]

TOCOM Deploys KVH's Industry Leading Ultra-Low Latency Networks between Tokyo and CME's Data Center


CHICAGO --(Business Wire)--

KVH (News - Alert) Co. Ltd., Asia's leading information delivery platform headquartered in Tokyo, Japan, today announced that Japan's major commodity exchange, Tokyo Commodity Exchange (TOCOM) has selected KVH's Global Ether-WAN, the industry's fastest global ultra-low latency networks, for its connection between TOCOM Tokyo proximity data center and the Chicago Mercantile Exchange Group (CME) data centers in Aurora and Cermak, Illinois.

TOCOM has been experiencing an increase in overseas market participants, with foreign trading volume accounting for approximately 40% of TOCOM's overall volume. This increased trade activity from overseas has been mainly from Hong Kong and Singapore as well as the United States. By leveraging KVH's global ultra-low latency network for its IT infrastructure, TOCOM will provide U.S. traders with the high-speed connectivity and scalability required to capture across-market arbitrage opportunities, especially in key contracts such Gold, Rubber and Oil.

KVH's Tokyo Data Center 1 (TDC1) has been endorsed by TOCOM as its access point location and proximity hosting provider since 2008. KVH launched its point of presence ("PoP") in the CME Group's new colocation facility, Aurora, Illinois in January 2011 and started offering exchange colocation services comprised of hosting, connectivity and support services. Through network optimization efforts that were announced in March 2014, KVH achieved a latency of 122 milliseconds between Tokyo and Aurora, making this route the fastest network connecting these two locations in the market today.

"KVH's ultra-low latency network is ideal for market participants pursuing low latency driven strategies to connect to TOCOM. The trading environment in Asia is evolving rapidly, with increasing demand for higher bandwidth and reliable low latency connectivity, and we anticipate transaction volumes between Tokyo and Chicago/Aurora to continue to increase. KVH is committed to serving the needs of financial customers through reliable low latency infrastructure, and will continue to invest in expanding its geographic reach and service portfolio," said Ted Higase, President and Chief Executive Officer at KVH.



Mr. Tadashi Ezaki, President and CEO of TOCOM said, "As Asia's leading futures exchange, TOCOM is implementing measures to reach out to the global investment community. Through these initiatives, market participants would be able to enjoy broader access and trade more products on various markets with more arbitrage opportunities and increase liquidity. We expect KVH to continue supporting our endeavors to establish a strong foothold in Asia and other global financial and commodity markets."

About KVH


KVH is an Asia Pacific IT Services and Data Center Services Provider that was established in Japan. KVH's Information Delivery Platform delivers integrated cloud and network solutions and best-in-class service to its customers. KVH owns infrastructure and provides services that enable clients to store, process, protect and deliver their vital business information. KVH provides IT Services, Cloud Services, Data Center Services, Managed Network Services, and Professional Services.

KVH operates the lowest latency network in Japan, and with over 500 financial services customers, is the leading provider of ultra low-latency network and proximity hosting solutions to the financial trading community in Tokyo and Osaka. KVH also offers low-latency connectivity services between major financial markets in the Asia/Pacific region and the U.S. including Tokyo, Chicago, Aurora, New York, Singapore, Hong Kong, Shanghai, Seoul/Busan, and Sydney. More information on KVH can be found at www.KVHasia.com

About TOCOM

The Tokyo Commodity Exchange, Inc. (TOCOM) is Japan's largest commodity futures exchange with a trading volume of 27.2 million contracts, representing a 98.6% market share, in 2013, and one of the most prominent exchanges in Asia. Futures and Options contracts on a variety of industrial products (i.e.: gold, silver, platinum and palladium in the precious metals market; crude oil, gasoline, kerosene and gas oil in the oil market; gasoline and kerosene in the Chukyo-oil market, RSS3 in rubber market) and agricultural products (soybeans, corn, azuki and raw sugar) are traded electronically. Its Gold market is most liquid in East Asia and the Platinum market is most liquid in the world. TOCOM Rubber is the established benchmark utilized globally.

TOCOM was established in 1984 as a result of a merger between the Tokyo Textile Exchange, founded in 1951, the Tokyo Rubber Exchange and the Tokyo Gold Exchange. TOCOM became a for-profit stock company in December, 2008.

TOCOM's recent achievements include launching a new trading platform based on the Nasdaq OMX technology in May 2009 and extending the night session until 4:00 JST in September 2010. The Exchange has continuously implemented series of reforms and introduced various trading rules in line with global standards to establish a sound commodity market open to the global trading communities. www.tocom.or.jp


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