With 2019 being referred to as a landmark year for institutional investment in digital assets, trading performance is a high priority. Current exchanges being developed to accommodate such investors are focused on delivering a frictionless and intuitive experience, covering everything from trading technology to user experience.
Let’s recap the essentials of performance and what we can expect from the next generation of digital asset exchanges.
Order matching engines
Every exchange has a matching engine, which works as a mechanism for completing transactions. The quality of a matching engine is determined by how fast it can match and fulfill trade orders – the faster it works, the higher the performance of an exchange.
For example, ANXONE’s matching engine is able to facilitate 190,000 transactions per second with 99.8% uptime. With such a significant volume of trading activity being managed at any given time, traders can invest knowing they are able to execute their strategies without avoidable disruptions.
Platform speed is essential to the trading experience due to volatility in the market. Any lag between the initiation and matching of an order can significantly affect the entry and exit prices and thus influence any potential profit and losses. Reducing or removing such lag is non-negotiable for today’s digital asset exchanges, especially at a time when the volume of digital asset trading activity could reach unprecedented levels. Exchange technology simply must be capable of scaling into the future.
Shared order book technology
A shared order book is a digital list of buy and sell orders, which a matching engine “matches.” With a deep order book, there are more active orders available to match. There will thus be more liquidity for traders on the platform and a reduction in the impact made by large-scale trades. This is an essential point for institutional investors, who will enter digital asset markets with significant injections of capital.
ANXONE provides a shared order book which facilitates access to the trades of other exchanges to match orders. This allows traders more room to create and implement their investment strategies. ANXONE is capable of providing investors with up to US$500mn in daily liquidity.
User experience and trading interface
The final aspect of trading performance is user experience. The interface of professional exchanges should be easy to navigate, the information should be accessible and simple to understand, and the trading functions should be seamless to use. For example, it is important to present the kind of data relevant to a professional trader – a market selector, market graphs, order types, order books, and trade histories – in a way that is clean and engaging.
Perfecting user experience should be an important priority for digital asset exchanges going forward. Institutional investors expect and rely on these features, which they are accustomed to using on traditional exchanges. The digital asset exchanges that design themselves to meet such expectations will be in the best position to receive their investment when the time comes.
ANXONE’s trading interface uses a modular design, tailored for professional investors. It also has a mobile application to allow traders to trade on-the-go.
About ANXONE Solutions
ANXONE Solutions is an industry pioneer and provider of blockchain technologies with a growing suite of products and services. Our digital asset exchange solution enables you to build a branded exchange and deploy it within 30 days. We manage the end-to-end development, configuration, and implementation of your turnkey platform, so you can focus on launching and growing your business.
Our exchange solutions ensure you have all the functionalities you need to serve your clients. Our performance technology boasts a best-in-class matching engine that is scalable, to rapidly process high order volumes and support future growth. Our matching engine was developed by the same company behind some of the leading traditional asset exchanges globally. We also provide connectivity options, including FIX or REST APIs, in addition to collocation options through our tier 4 data centers.
For more information, contact [email protected].
