Unlocking Success: Devexperts’ Innovative Approach to Futures Trading System Development
As interest in futures trading continues to surge, the demand for advanced and scalable trading technology is on the rise. In this context, Devexperts, a prominent provider in the FinTech software industry, shares its extensive expertise in developing futures trading systems, highlighting essential technical requirements and strategic considerations.
Making the Right Decision: In-House vs. Outsourced Futures Trading Systems
One of the crucial decisions for trading firms is whether to build their systems in-house or to outsource development. Devexperts, while recognizing its bias as a provider of ready-to-integrate components, also offers custom solutions and third-party integrations. Here are some key points to consider:
- In-House Development: Grants complete control but may involve significant development and operational costs.
- Outsourcing: Provides quicker time-to-market and reduced maintenance, making it suitable for firms with limited resources.
Understanding Hardware and Software Requirements
The hardware and software setup for a trading firm is heavily influenced by its operational needs. For instance:
- Low Latency Needs: Market makers and high-frequency trading firms typically require bare-metal servers and colocated infrastructure at exchange data centers.
- Retail Brokers: These entities can utilize more flexible setups, such as Software as a Service (SaaS) solutions and virtual machines, integrating with providers like CQG or StoneX.
The Importance of User Interfaces in Trading Systems
User interfaces (UIs) are essential for enhancing client engagement and ensuring operational oversight. A comprehensive trading system typically includes:
- Customer-facing platforms
- Admin dashboards
- Interfaces for compliance and technical operations
- Back-office processing interfaces
These UIs must be seamlessly integrated through a robust backend that features effective order management and risk management systems, along with open APIs for third-party tool integration.
The Role of the Matching Engine
At the core of any trading platform is the matching engine. Devexperts’ DXmatch serves as a clustered, replicated state machine utilizing the RAFT protocol for distributed consensus. Key functionalities of matching engines include:
- Support for various order types, including Limit, Stop, Stop Limit, and Market orders.
- An execution algorithm to determine how incoming orders are processed.
Devexperts’ Comprehensive Trading Infrastructure Solutions
Over the years, Devexperts has been integral in delivering innovative trading infrastructure across the industry. Their approach focuses on offering modular components, such as:
- Trading Platforms: Various versions of the DXtrade platform.
- Matching Engines: DXmatch for efficient order processing.
- Order Management Systems: DXOMS for streamlined order management.
Additionally, risk management and real-time exposure tools are incorporated into DXtrade, while market data solutions are provided through their subsidiary, dxFeed, which includes tick-level data and custom index tools.
For a more in-depth understanding of futures trading technology, read the full guide here.
