Elevating Financial Trading:

Setting New Standards for
Reliability, Speed, and Fairness.

Elevating Financial Trading:

Setting New Standards for Reliability, Speed, and Fairness.

Confinity Low Latency Messaging (CLLM) is designed to address messaging requirements in financial market environments. Our global clientele, spanning stock exchanges, market operators, banks, brokerage firms, and financial solution providers, all derive substantial value from our product.

An extensively adopted and well-established application of CLLM is the Stock Exchange Reference Architecture (SXRA) application.

Here are the key benefits of CLLM within the context of the Stock Exchange Reference Architecture (SXRA) application:

Unparalleled Performance

CLLM enables the exchange of approximately 100 million ordered messages per second with single-digit microsecond latencies.

High Availability with Fast Failover

The Reliable and Consistent Message Streaming (RCMS) component detects application failures and seamlessly switches data streaming to a backup instance. This ensures consistent data availability and minimizes errors.

Reliable Message Delivery

The Reliable Multicast Messaging (RMM) component provides:

Delivery assurance: Ensures messages reach their intended recipients.
Message persistence: Guarantees data retention even during system failures.
Wire-speed recovery: Swiftly recovers from disruptions.
Auditing: Monitors message flow for compliance and troubleshooting.

Consistent Message Ordering

RCMS enforces a consistent order of messages from various transmitters to multiple receivers. This ensures that all recipients receive incoming messages in the same order.

Monitoring

CLLM offers detailed visibility for monitoring messaging streams continuously. This helps detect anomalies and optimize performance.

Adaptability

The application can be easily adapted to different network interfaces, including Ethernet, InfiniBand, and RoCE, through a straightforward configuration adjustment

A stock exchange typically consists of four key components:

Market Participants – These are private or institutional investors who generate orders for trading.
Gateway (GW) – The gateway captures orders from the market participants and forwards them to the appropriate Matching Engine (ME). A gateway also sends confirmation back to participants if a trade is successful.
Matching Engine (ME) – Each highly available matching engine collects relevant orders from one or more GWs and attempts to match each order against an in-memory Order Book. The outcome of a successful matching process is a confirmation back to the appropriate GWs and the trade information to post-trade processing.
Post Processing (PP): Responsible for after-trade tasks, such as managing trades, auditing transaction history, and updating market data.

To see how CLLM interconnects these components, explore the following example application widely adopted by our stock exchange customers worldwide.

Stock Exchange Reference Architecture (SXRA)

This diagram illustrates an example application of CLLM, specifically designed for stock exchanges. In an SXRA application, an example market order executes in this sequence:

Market Participant submits an order to sell a stock in the Financial Information eXchange (FIX) format.
A Gateway (GW) receives the order and converts it to the internal format used by the stock exchange.
With the assistance of the CLLM messaging bus, the Gateway (GW) multicasts the order to the appropriate Matching Engine (ME) Tier.
The Matching Engine (ME) attempts to match the order with the highest available buy order from an in-memory Order Book.
Once the market order is matched successfully, the Matching Engine (ME) multicasts the trade information to all post-trade processing applications.
Additionally, the market order and trade information can be logged to the CLLMd Persistent Storage for data logging, auditing, and other purposes.

At this point, the order is fulfilled, and the market participant requires confirmation. The Matching Engine (ME) handles this by sending a confirmation to the appropriate Gateway (GW), which then relays the message to the market participant, notifying them of the successful stock sale.

To ensure uninterrupted service, each matching engine tier has one or more backup replicas to handle any type of failure. In our diagram, ME1-1 and ME1-2 are complete replicas forming a tier. CLLM manages these replicated components and automatically designates one as the primary role. While both replicas execute the applications logic in the same manner, only the primary, ME1-1 in our example, sends out information. If ME1-1 becomes unavailable, CLLM swiftly switches to ME1-2 while maintaining the sequence of all received market orders. This seamless failover process safeguards the uninterrupted availability of trading infrastructure, which forms the foundation of fair trade.

As a fail-safe measure, persistent storage in the CLLMd Message Store is provided to collect real-time incoming market orders from the Gateways (GW). These orders can be retrieved later if a matching engine joins late (a “late join”) or experiences temporary offline periods and requires data to be transmitted again (referred to as “message playback”).

Our Solutions Transform also other Industries

Confinity Low Latency Messaging (CLLM) is a communication protocol specifically designed for ultra-fast message exchange in distributed systems. While CLLM’s primary focus is on addressing the messaging needs of financial institutions, its capabilities extend beyond the realm of financial markets. Notably, CLLM excels at delivering real-time data reliably over multicast (UDP) networks, making it a powerful choice for a wide range of latency-sensitive applications.

Urban Mobility

Capable of real-time communication for traffic updates, cooperative cruise control, vehicle-to-vehicle communication, and pedestrian detection, CLLM enhances safety and efficiency in transportation systems.

Innovation Hub

At Confinity Solutions, we continuously strive for innovation, enhancing our product and expanding its impact to serve other industries dealing with substantial data and demanding timely communication.

Our Product

Explore the transformative benefits of CLLM! Click below to discover its powerful features and unique advantages.

This is Confinity Solutions

We are a multinational team hailing from diverse corners of the globe. Our rich cultural backgrounds and unique mindsets come together harmoniously to serve customers worldwide.

Stefan Ott, CEO & Founder

Our key objective is to deliver a leading-edge, customer-focused, multi-asset-class and reliable trading system, building on our track record of innovation as a first-mover in electronic markets. Deutsche Börse is proud of its close cooperation with best-in-class partners.

nuam exchange integrates our exchanges (Colombia, Peru, and Chile) to build a new, unique, open, and transformative capital market. We are proud to collaborate with a best-in-class partner for ultra-low latency.

Chi-Tech selected WebSphere MQ Low Latency Messaging as a messaging backbone for our high performance, low latency matching technology, assuring that our platform continues to meet the speed and mission-critical reliability requirements of today’s algorithmic and high frequency trading communities.