Matching Engine for Crypto and Stock Exchanges

Matching engines make use of one or more algorithms for allocation of trades among competing offers and bids of the same value. Our ForumMatch trading system with integral matching engine is suitable for exchanges, trading venues and marketplaces handling multiple asset classes. These venues can facilitate a broad range of participants into ForumMatch including market makers, liquidity providers, banks, asset managers and payment institutions. B2Broker launched the first version of its matching engine in 2018 after an in-depth development and integration phase which incorporated ground-breaking technology.

On the other hand, a decentralized engine may be the better choice if you need resilience and security. TeraExchange was unable to scale and innovate with their existing provider’s solution. Connamara worked with the exchange to build and launch a future-proofed SEF with state-of-the-art self-healing capabilities that enable the exchange for scalability. Connamara, in conjunction with a local partner, delivered a solution to transition production to a platform within the home country on a tight timeline. After intensive planning, benchmarking and launch, the system performed well without any interruption to trading on the exchange.

Also, in case of node or disk failure, loss of data or matches can result in financial loss. However, the worst-case complexity of adding or deleting an order from a sorted list is O(n). This means that if the list is very large, then adding or deleting an order can be very slow. The decision of whether to match orders in memory or in a database was one of the key decisions made when designing our matching engine.There are pros and cons to both approaches. DXmatch offers a guaranteed formula for direct market access, namely two of the most widely used APIs.

These days, trading is almost entirely facilitated by electronic trading matching engines. The software supporting it is the most crucial part of any exchange as this is what enables users to trade with each other. Connamara Technologies’ advanced exchange platform and matching engine were conceived by a trader and built by engineers with decades of capital markets expertise. A unique combination of trading and engineering experience put Connamara on the forefront of innovation, leading the industry into the age of electronic trading and, more recently, onto the cloud. The EP3 exchange platform reflects years of successful deliveries of exchange technology that provide the speed, flexibility, and scalability today’s marketplaces demand. GMEX offers both on-site deployment or a fully managed software-as-a-service (SaaS) solutions for quote, auction and order driven markets with ability to also deploy into multiple types of cloud environments.

EP3 is resilient, automatically redistributing order flow across remaining engines if one matching engine fails, ensuring constant availability. Our Professional Services team can develop solutions around EP3 to address the needs of the market or asset class you are targeting. Our Support Service team is available 24×7 to help keep your exchange running smoothly. Powerful, flexible, and easily scalable, EP3 comes out of the box with all the capabilities a modern exchange requires.

The extensive functionality of the order book supports a wide assortment of kinds of orders combined with high availability and ultra-low door-to-door latency, in a resilient and proven environment. Boost overall efficiency by supporting the process with a data-driven approach. Matching engines will always attempt to match a buy order before a sell order. Each has its own advantages and disadvantages, so it is worth considering which one would be best for your needs.

  • B2Broker launched the first version of its matching engine in 2018 after an in-depth development and integration phase which incorporated ground-breaking technology.
  • A red-black tree was chosen for matching orders to achieve better performance.
  • Supports all asset classes – from equities to exotic derivatives to digital assets – and market models, in a single system.
  • B2Trader handles the job of matching an incoming market order of the user with the existing limit order of another user in the DOM, executing the trade on the order book and publishing the result.

Modern markets are powered by trade matching engines and order matching systems. Electronic trade has significantly matured, and floor trading has become a thing of the past. This has also lowered transaction costs by a great deal where you are charged only a tiny percentage for every traded share.

Our pioneering exchange technology is coupled with our exchange services to allow markets to efficiently launch institutional-grade modern exchanges quickly and reliably. Prioritizing high performance, EP3’s advanced matching engine technology sustains an order rate of up to 120,000 orders per second with an average latency of fewer than 8 microseconds. EP3 ensures a flexible and fair license agreement, that allows customers to pay only for what they need and add additional components as they grow. Connamara’s Discovery process provides detailed pricing and guidance that matches the exchanges tailored needs. This modular licensing structure means you only pay for the specific functionality and integrations your exchange requires, resulting in a more efficient and cost-effective path to market.

Ultimately, the choice between building and buying depends on a number of factors, including business requirements, available resources, time constraints, and the trade-off between control and convenience. EP3 was incubated within Connamara Systems — a leading capital markets software engineering provider since 1998 — then spun out into Connamara Technologies in 2022. The engineers at Connamara Technologies have deep experience in the rigors necessary to build applications for trading and capital markets. For customers, this means EP3 is built for the scale and reliability that capital markets require.

matching engine technology

The servers that co-host the software powering this engine are decentralized to different locations. However, exchanges can still leverage for arbitrage trades between other exchange locations within milliseconds. Centralized engines are typically faster and more efficient but are also more vulnerable to attacks. We offer custom software development services to help you meet your operational and business objectives. When you choose Connamara as your technology partner, you can trust you’ll have expert guidance at every step — from the first interaction to your first trade.

matching engine technology

In addition, the RAFT protocol ensures automatic failover for the leader-matching engine. Integrate EP3 with third-party or proprietary market access and trading applications. Industry-standard, developer-friendly APIs enable you to integrate custom trading applications, market access connectivity, more efficient order management, clearance and settlement apps, regulatory reporting, and more. EP3 has the flexibility to accommodate non-standard assets in a central limit order book, empowering traders with price transparency and discovery for a diverse range of assets.

crypto matching engines

It might use AI techniques like NLP and text extraction to represent users, goods, services, and products in a way that allows the engine to compare and match them. Also, event processor mode that updates the database from Kafka messages is developed. Multiple replica of event processor can be run, which allows us to achieve high performance and availability without sacrificing scalability. FX-EDGE LLC, registered in United States, is a fully integrated forex technology provider that delivers turnkey solutions to all forex market participants looking to access the retail and institutional spot forex markets. Whether you already have an order matching engine and need help optimizing your product, or you’re just getting started and need help figuring out your next steps, we’re here for you.

matching engine technology

The MaterialsXchange team had deep domain expertise in the raw materials sector but needed a partner who could build matching engine technology to fit into this ecosystem — and build it quickly to prove the concept. Discover how our EP3 platform enabled MaterialsXchange to launch a robust, reliable exchange in a matter of months. The crypto matching engine significantly minimizes operational hazards across the architecture through a collective operational core that powers all kinds of business applications.