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As power systems becoming more closely interconnected and are being deregulated in energy markets, distributed simulations among different dispatch centers are highly required for online full system analysis and control applications. In this paper a new algorithm for distributed transient stability simulation of interconnected power systems is presented. Based on a Jacobian-free Newton-GMRES(m) method, this algorithm requires only exchanges of states of boundary buses among different regions. Therefore, it has strong scalability in distributed computing environments built on heterogeneous computing resources. Moreover, several accelerating methods are developed to enhance its efficiency, including continuous preconditioning with adaptive preconditioners, predicting boundary conditions and multistep coordination. The standard IEEE 39-bus system and a real power system with 1165 buses were used as test systems. The test results show that these accelerating methods greatly enhance the convergence rate of the proposed algorithm and reduce communication costs remarkably, which proves the novel algorithm is feasible and can be adopted in wide area networks with high-latency. [ABSTRACT FROM AUTHOR]