Chapter 18: Trading Systems & Market Infrastructure

Trading systems turn orders, market data, risk decisions, and settlement obligations into a deterministic and auditable market. This chapter covers the exchange path from order entry to post-trade finality, including low-latency infrastructure, auction design, and on-chain exchange mechanics.

• 18.1 Exchange Architecture: Order Books, Matching Engines, Price-Time Priority
• 18.2 Order Types & Execution: Market/Limit/Stop Orders, Smart Order Routing
• 18.3 Market Data Systems: Ticker Plants, Data Broadcast/Fan-Out, Multicast Feeds, FIX Protocol
• 18.4 Low-Latency Engineering & High-Frequency Trading: Kernel Bypass, Co-Location, Hardware Timestamping, LMAX Disruptor Pattern, and FPGA Accelerator Offloading
• 18.5 Risk Controls: Pre-Trade Risk Checks, Position Limits, Circuit Breakers, Margin/Collateral Engines
• 18.6 Clearing & Settlement: Central Counterparties (CCPs), T+1/T+0 Settlement, DvP
• 18.7 Auction Mechanisms & Price Matching: Continuous Double Auction, Batch/Call Auctions, Uniform vs Discriminatory Pricing, Opening/Closing Auctions, Dutch/English/Vickrey Auctions
• 18.8 Exchange System Design: Multi-Asset Exchange Architecture, Sequencer/Matching Engine Determinism, Order Book Replication, Market Maker Incentives, Cross-Exchange Arbitrage Infra
• 18.9 On-Chain Exchange Mechanics: AMM Bonding Curves vs Order-Book DEXs, MEV, Batch Auctions (CoWSwap-style), Slippage/Price Impact Models
• Chapter 18 References