A Trading system offers a sophisticated platform to trade securities. The financial institutions enable investors/traders to open, execute, close, and manage market positions in a secure way through their trading system. Most trading systems nowadays offer automated trading controls (algorithmic trades) that help investors in making the right investment strategy decisions quickly, considering all risk possibilities and yielding the best benefits. The trading system is expected to handle high trade volumes ensuring low latency throughput. Examples of the popular trading system include TradeStation, TD Ameritrade, etc.
With the emergence of FIX (Financial Information Exchange) protocol standardization and the exponential growth of high-speed electronic algorithmic trading systems, there is a strong focus on the technology stack adopted by the trading systems to meet the ever-changing needs of clients. The clients, in general, includes various market segments, including professional clients, institutional clients, and interbank clients. Even the trade execution venues face a similar technology challenge to perform quick order matching, notifying the trade-to-market data distributor in a few milliseconds. For example, NASDAQ offers a fully automated market.