Japan’s sole HFT Dharmacapital relocates to singapore
Japanese only high-frequency trading firm Dharmacapital has moved its entire workforce from Tokyo to Singapore, highlighting the growing challenge facing the country as it competes with other Asian financial centres for trading talent and market-making businesses, according to a report.
Japanese high-frequency trading firm Dharmacapital has shifted its entire staff from Tokyo to Singapore, reflecting the increasing difficulty Japan faces in competing with other Asian financial hubs for trading talent and market-making businesses, according to a report. The move, completed earlier this month, has Dharmacapital's Singapore office now serving as the firm's operational base, while Japan remains its primary market.
Dharmacapital's Singapore CEO, Akiyoshi Shiotani, stated the relocation aimed to enhance the company's access to global markets. He emphasized the firm would maintain liquidity provision for Japanese markets and support trading efficiency there. This departure is notable as Dharmacapital was the sole high-frequency trading firm in Tokyo, out of 53 entities registered to participate in Japanese markets, according to the Financial Services Agency's July list.
Most of its international competitors, such as Citadel Securities, Virtu Financial, and Jane Street, manage their Asian operations from Singapore or Hong Kong instead of Tokyo. Japan has been striving to bolster Tokyo's status as an international financial center, but faces competition from regions offering more tax benefits and easier access to global financial talent.
High personal taxes and language barriers are among the factors cited by finance professionals that have led firms to seek alternatives in Singapore and Hong Kong. Singapore is working to strengthen its position as an investment hub, proposing additional tax incentives for fund managers, while Hong Kong is also attracting hedge fund and asset-management talent.
The competition is particularly crucial for high-frequency and algorithmic trading firms, where access to advanced financial infrastructure and international markets is vital. Dharmacapital's relocation does not signify a retreat from Japan. The company will continue trading in Japanese markets and providing liquidity from Singapore.
Market-making firms have become increasingly significant to trading activity in Tokyo, accounting for over 30% of trading value on the Tokyo Stock Exchange since at least 2024, according to Japanese regulatory research.
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