The Tokyo Stock Exchange on Monday will begin trading on an upgraded and substantially faster system, the TSE said in a statement on its Website.
The trading system, called Arrowhead, is designed "to meet the needs of investors such as high-speed order placement and execution processing and to respond to reductions in sizes of orders and rapid increases in the number of transactions," the statement, dated Saturday, said.
The new system can process orders within 5 milliseconds; media reports say that the previous TSE system required 2 seconds to 3 seconds to process an order.
That new processing time is similar to that of the New York Stock Exchange but still lags that of the London Stock Exchange's 3 milliseconds, reports say.
Media reports say the system is designed to renew investors' confidence in the reliability of the Tokyo exchange, Asia's largest stock exchange and the world's second-largest after the NYSE, after a number of trading-system problems.
In December, the TSE was ordered to pay 10.7 billion yen ($115 million) in damages to Mizuho Securities after the exchange incorrectly handled a trade in 2005.
The move also comes as the Tokyo exchange plans to go public later this year, reports say.