The primary motive behind the exchange machine engine is a platform for electronic exchange. The ep3 exchange matching engine provides a comprehensive and reliable potential to keep pace with changing market situations. Thanks to exchange matching engine technology, the marketplaces can handle the trading functions starting from the formation of price order matching. The technology offers a single solution for trade support in any asset anytime, anywhere.
What is an exchange matching engine?
A trade matching engine is considered as the fundamental software and hardware element of any electronic exchange taking place. The technology has been designed in a way that there is bidding and thereby completion of trades. The matching engines make use of single or multiple algorithms and delegate trades among competing offers and bids at the same price.
The working principle behind the exchange matching engine?
The algorithms used in an ep3 exchange matching engine acquire data on all created orders. Furthermore, when there are two opposite matches, a deal is made. A trader has the option to use such algorithms to limit, and even stop-limit order, and even create a market. The matching engines utilize a wide array of algorithms, out of which the FIFO principle seems to be the most popular and common one.
The importance of an order is established by the time used in the algorithm. Whether there are two identical algorithms, the matching engine will use the one that was first created. The exchange matching engines are complicated software that acquires and syncs data across multiple trading pairs.
The most common algorithm used in the exchange matching engines is the “time price priority” algorithm. This algorithm refers to those offers and bids that enter into the match engine enjoying priority over similar offers and bids that enter subsequently into the machine. Several order types, like the limit order, and the market order are supported by an exchange matching engine. Moreover, exchange matching engines might follow the standard APIs like FIX APIs, or design a unique one.
- The exchange matching engine is robust, ultra-low latency, and proven to cater to regulatory approvals
- The open-source technology aids in reducing the operational costs of licenses and other costs related to ongoing support
- Features flexible and customized system addressing particular requirements of the market
- Potential to handle conventional assets and also support digital assets along with tokenized assets.
- Efficient implementation of different trading models and matching algorithms
- Easily fixes low latency and integration for liquidity providers
- Supports clients across the globe with tailor-made individual solutions
Ep3 exchange matching engine is the heart of any electronic exchange, storing the orders placed by the users. The ask orders and bids are matched by the engine allowing the user to purchase and sell assets at market price rates. The depth of the market condition is influenced by the exchange matching engine. Orders are assigned a category by their bids, timing, and price. A deal automatically gets initiated when the exchange matching engine identifies the link between the bid and ask orders. Furthermore, the trader might also cancel a transaction.