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One of the appeals of Time-Division Multiplex (TDM) switching systems is the large amount of space saved by there being no need for a space-division switching network. Studies were made in an experimental exchange (Fig. 1) operated at the Central Laboratories of Siemens & Halske since 1962 to determine what conditions are important for a compacting effort. The most important factors are 1) The speed of the circulating memories. 2) The internal organization of the system.