Tokyo 2011: Japanese Firms Cautious on Local Impact of High-Frequency Trading

Neil Katkov, Celent; Takashi Hiratsuka, Resona Bank; Takeya Kamei, Deutsche Bank; Shunsuke Nishino, Daiwa SB investments

High-frequency trading (HFT), with its demand for low-latency market data, has taken root in Japan, and buy- and sell-side firms are carefully watching the trend develop, according to panelists at the Tokyo Financial Information Summit.

Shunsuke Nishmo, general manager and head of trading at Daiwa SB Investments, sounded a note of caution about the growth of HFT. “It could provide more liquidity, but it does not mean that everything will work out nicely,” he said. “High-frequency traders may pro