Exchanges Made easy
GROUNDBREAKING EXCHANGE PLATFORM AND MATCHING ENGINE
EP3 is Connamara’s advanced exchange platform and matching engine technology. Conceived by a trader and built by engineers with years of fintech expertise, it represents the accumulated knowledge and experience of successful deliveries of implementations since 2007. Thanks to its feature-rich functionality, it is the smart choice for both start-up marketplaces and established exchanges.
A Fast and Cost-Efficient Solution for Start-Ups
For startups, EP3 provides the functionality to build and launch an exchange – from the ground up – in a matter of months, or even weeks. It is flexible enough to allow customization to meet the unique needs of a new marketplace that may not fit neatly into the existing pattern of capital markets. Connamara understands the importance of “getting to the first trade” for new exchanges and EP3 is designed to get you there quickly. Read how EP3 got Materials Exchange to its first trade in 4 months.
A Smooth Transition for Exchanges Replacing Legacy Systems
For established exchanges, EP3 offers core functionality as well as a host of add-on integrations, custom development work and support services for comprehensive front-to-back capabilities. As just one example, EP3 offers a set of well documented APIs that can allow an established exchange to replace legacy matching engines with EP3 using a phased approach. A phased approach provides flexibility and reduces the risk of the transition.
Technology Backed by Experience, Reputation and Integrity
The choice of exchange and matching engine technology is the single most important decision an exchange or marketplace can make. And the choice should rest on the talent, experience, reputation and integrity of the developers of that technology. Connamara is justifiably proud of its 20+ year track record of successful deliveries and checks all the boxes:
- We Understand Trading and Traders, Markets and Marketplaces
Our breadth of experience in different asset classes, market types and trading styles is unrivaled.
- We Serve the Most Demanding Clients
We understand the urgency of getting something done. Our culture reflects our roots in the trading pits of Chicago where every missed trade is a missed
- Technology is Our Business, Our Only Business
Technology is not a side hustle for Connamara – it’s what we do. Our clients get our full attention regardless of size. Their goals are our goals, their success is our success. We are their partners, not their competitors.
- Integrity and Professionalism Above All
We say what we mean. We do what we say. We live by the creed of the pit trader – “never back out of a trade”. Never have.
THE FEATURES THAT SET EP3 APART
The EP3 matching engine is agnostic to the asset class being traded. This means that EP3 can handle run-of-the-mill futures, options, swaps, securities, and cash instruments but also commodities and intangible assets, like lumber, bankruptcy claims, intellectual property rights, sports gaming, just to name a few.
By exposing a robust set of application programming interfaces, EP3 can be extended and customized to fit the needs of any exchange or marketplace.
EP3 is designed with performance in mind. The EP3 matching engine can sustain an order rate of over 120,000 orders per second at a sub-8 microsecond average latency.
EP3 can scale horizontally by the addition of new matching engines to accommodate increases in trading activity. Matching engines can be added dynamically in real time during the trading day.
EP3 can be deployed in a hot primary / hot secondary, warm disaster recovery configuration. A failure in one matching engine will be recovered automatically by restarting a new instance of the engine.
EP3 offers the latest in application containerization and orchestration technologies. This means that EP3 can be deployed to any cloud provider and/or to any customer on-premise data center.
ORDER MATCHING RULES
By default, EP3 implements a standard price-time-priority matching algorithm via a Central Limit Order Book (CLOB) that is optimized for maximum throughput. However, the matching engine is designed in a modular fashion, allowing any custom implementation of an arbitrary matching algorithm to run within EP3. In previous engagements, we have leveraged this capability to support bilateral, pro-rata, prediction, and other esoteric matching rules.
REQUEST FOR QUOTE
EP3 supports Request for Quote (RFQ) workflows. In contrast to central limit order book (CLOB) trading, which is usually anonymous, the parties trading via RFQ are typically aware of whom they are trading with and direct the requests to known parties. While RFQ trading can be used on standardized highly liquid instruments, the transparency makes it well suited for highly customizable, illiquid instruments.
EP3 is built to accommodate all types of markets and trading environments. From new
marketplaces to traditional regulated exchanges.
Since 2007, Connamara has worked with clients on exchanges and new marketplaces for
recognized asset classes and a broad range of assets that have never been exchange traded
like bankruptcy claims, patent rights, carbon certificates, swaps, events, and betting.
EP3 provides all the functionality and services to launch an exchange.
Provides the central limit order book matching buyers to sellers on a price time priority.
Manages tradable instruments and book creation, deletion, and state changes.
Maintains a record of order state and history. Manages workflows for Request for Quotes and Auctions.
Listens for book events to produce trades with buyer and seller information for clearing and settlement.
Manages users, market participants, participant groupings, and participant suspension.
Encapsulates the pre-book risk checks for instrument states, absolute and relative price limits, order size limits, currency balance and position size checks.
AVAILABLE EP3 APIs
EP3 exposes several application program interfaces (API) to allow customers to enter orders, receive market data, and subscribe to drop copies. These include industry standards such as FIX (Financial Information eXchange), GRPC (Google Remote Procedure Calls) using Google Protocol Buffers, and REST.
Allows client applications to send orders and receive market data via Google protocol buffers.
A FIX endpoint allowing connected clients to send and manage orders and access RFQ functionality.
Presents a FIX endpoint to allow connected clients to receive market data via the FIX protocol.
Allows client applications to administer and operate the exchange.
- Contribution – allows custom indices to be published on the market data feed.
- Clearing & Settlement – Exposes information necessary to integrate with clearing houses and back office systems for post-trade processing.
Exposes basic user and service authentication services.
The REST API exposes EP3 functionality as a RESTful web service.
THIRD PARTY INTEGRATIONS
EP3 can be integrated with downstream third-party services that may be needed to launch and operate the exchange.
Included in EP3 is an administration user interface that allows exchange operators to manage the day-to-day operations of the exchange.
The EP3 administrative interface has several features to allow the exchange staff to manage the operations of the exchange. Included but not limited to user, participant, and account creation. Instruments, exchange hours are also managed through the EP3 Administrative interface.
OPERATIONAL MONITORING AND ALERTING FRAMEWORK
EP3 includes a customizable dashboards for monitoring and alerting on the health of the platform.
The EP3 monitoring and alerting framework allows operations teams to create custom alerts and observability dashboards to monitor system health and to proactively take steps to head off any potential disruptions.
EP3 leverages the OpenTracing framework for distributed tracing messages. This means that every single request into the system is logged and traced between all microservices on the system so there is an audit trail of EVERY request, admin or user, on every API.
PRE TRADE RISK
To maintain market integrity, EP3 performs the following risk checks on each order or request to amend an existing order.
The EP3 administrative interface has several features to allow the exchange staff to manage the operations of the exchange. All the functionality described below is also available through the Admin APIs.
EP3 supports order types below:
EP3 supports the user types below:
EP3 supports the firm types below:
EP3 WEB TRADING CLIENT
For clients wishing to present a user interface to their customers for order entry and market data display, EP3 Trader is a customizable web trading application that can be tailored to fit the needs of the exchange.
EP3 Trader is a customizable web and mobile responsive user interface for entering orders to the exchange.
As an add-on to EP3, clients can leverage the base functionality of EP3 Trader. Connamara professional services team can customize EP3 Trader to meet specific customer needs.
EP3 provides all the functionality, reliability, and scalability to successfully launch and operate an exchange, but Connamara understands that many exchanges have unique needs and goals that require custom development work. For example, the exchange may need to send trades executed on EP3 to a clearing organization for trade clearing and settlement. Or, it may want to use a third party for trade practice surveillance.
This is where Connamara Professional Services (CPS) comes into play. CPS will work with the exchange to fully understand the unique requirements of its marketplace and asset class and provide business analysts and development staff needed to customize its platform or matching engine. Leveraging the EP3 flexible architecture, CPS will extend or enhance the EP3 functionality needed to meet these exchange specific requirements. CPS will also work with third party providers of downstream services to integrate with EP3.
To operate an exchange successfully requires full time monitoring and support of the platform. Connamara Support Services (CSS) can provide highly experienced technical staff to monitor and support the operation of the platform up to 24×7.
This staff can monitor for anomalies, issue identification, escalation, and resolution. The amount of support is tailored to the needs of the client. Some clients need a comprehensive program that includes 100% coverage, others may have their own staff who may only want to use CSS for issue escalation and resolution.