26 Sep Inside the Ternion Exchange: Our Matching Engine
Inside the Ternion Exchange: Our Matching Engine

Inside the Ternion Exchange: Our Matching Engine

A matching engine is the immune system of any exchange. A good matching engine allows for an efficient and rapid access to the market for both institutional and retail clients making sure that everyone has a fair chance to succeed.

What is a Matching Engine?

A matching engine is an efficient orders allocation algorithm. It is the core software and hardware component of an electronic exchange. It matches up bids and offers to complete trades. Matching engines use one or in some cases several algorithms to assign trades among competing bids and offers at the same price. 

The matching engine that we use on the Ternion Exchange can hold up to 125 000 transactions per second. Our matching engine also uses a FIX API protocol. 

What is FIX API?

FIX stands for The Financial Information Exchange. FIX API is a framework of rules and methods developed specifically for the electronic transmission of financial data. FIX protocol connects any type of connection to any requested platform. The protocol allows traders to efficiently reap the benefits of the market. Incorporating an Application Programming Interface aka ‘API’ into a trading operation’ infrastructure is a popular way of enhancing performance. It is widely employed because of being fast and user-friendly. 

Why FIX API?

The FIX API fosters a unified flow of real-time data between market participants. It is used by retail and institutional traders, liquidity providers, and regulators. While many APIs have comparable functionality in regard to data transfer, the FIX API supplies users with several distinctive advantages. Some of them include:

  1. The FIX Protocol allows for a quick transfer of a large volume of information. 
  2. FIX’s consistent language and extensive recognition allow for a quick and easy set up.
  3. Implementing a FIX API conserves the anonymity and discretion of proprietary systems operating within the market.
  4. It has the ability to rebalance the market making and indicate wash trades also knows as spoofing. 


And spoofing is….

Spoofing is a type of scam where an intruder attempts to gain unauthorized access to a user's system or information by pretending to be the user. The main purpose of it is to trick the user into releasing sensitive information in order to gain access to one's bank account, computer system or to steal personal information, such as passwords.

Advantages for Ternion

And for us, being on the other side of the platform, our matching engine provides a risk mechanism which can indicate when somebody is trying to manipulate the market.

For a proficient margin trading, we have multiple lines of quotations in order to always have the most precise one.

It has a slippage proof system, which in case we do not have enough volume, will send our partner exchange the order for execution in order for the client to always get filled upon necessity.

What drives us is our experience and knowledge of what exactly a professional or an amateur trader wants, needs and expects from a trading platform. Ease, transparency and security are our priorities.

Trade securely and seamlessly with the exchange made by experienced traders for their enthusiastic peers. 



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