Most exchanges build their systems using a tiered architecture that consists of order entry systems and FIX gateways to bring in and normalize orders, matching engines to create trades by matching bids and asks, and feed gateways to distribute results and updated pricing information to market participants. They typically use messaging middleware to carry information from one layer to the next because of the need for high throughput with low latency across the several messaging qualities of service required for different needs within the system.
- Order Execution
With support for both reliable and guaranteed messaging, Solace is the ideal platform for order execution systems. For a given message flow, some applications can use reliable messaging to get data with the lowest possible latency while other applications use guaranteed messaging so they get every single message in sequence even if they disconnect or can’t keep up with the message flow.
- Real-time to Near-Real-time Buffer
Trading platforms need to feed real-time output to many downstream applications such as trade data capture, settlements, market surveillance and more. Solace’s high-performance messaging solution absorbs such messages and queues them for subsequent fanout to near-real-time applications.
- TCP Feed Distribution
In some cases, exchanges distribute market data over TCP. Solace’s appliances perform TCP fanout in hardware, with each appliance supporting thousands of simultaneous connections for low TCO and tight first-to-last latencies. It also lets Solace provide a management information on a per-connection basis at every layer of the protocol stack.