Japan’s Only HFT Firm Dharmacapital Moves Base to Singapore

Dharmacapital moved its entire Tokyo workforce to Singapore earlier this month and made its Singapore entity the firm’s operating base. The company will continue trading and providing market-making services in Japanese markets.

People familiar with the matter confirmed the relocation was completed earlier this month and that the Singapore office will serve as Dharmacapital’s main regional hub. Akiyoshi Shiotani, chief executive of Dharmacapital’s Singapore unit, said the relocation was primarily intended to improve the firm’s access to global markets and that the company will keep supporting trading efficiency in Japan.

The firm had been the only high-frequency trading company headquartered in Tokyo among 53 entities registered to participate in Japanese markets, according to the Financial Services Agency list as of July.

Many international market-making and algorithmic trading businesses run their Asia operations from Singapore or Hong Kong. Firms such as Citadel Securities, Virtu Financial and Jane Street operate regional trading teams outside Tokyo.

Executives cited access to global markets, proximity to data centres and cross-border trading routes as reasons for choosing Singapore. Tax and talent considerations also factor into location decisions. Singapore has proposed additional tax incentives for fund managers, and Hong Kong has continued efforts to attract hedge fund and asset-management professionals.

Japan remains Dharmacapital’s largest market. Japanese regulatory research shows market-making firms have accounted for more than 30% of trading value on the Tokyo Stock Exchange since at least 2024. The firm confirmed its Singapore hub will support trading and market-making activity for Tokyo-listed securities.

Company leaders described the relocation as an operational change to expand access to other markets from Singapore while maintaining support for liquidity and trading in Japan.