FPGA Trading Exchange Architecture for Deterministic Order Matching
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Solution Overview
Problem
Current electronic trading systems face challenges in maintaining transactional determinism, fault tolerance, low latency processing, high volume capacity, and equitable access to information and opportunities under increasing transaction loads, while being susceptible to non-deterministic operations and vulnerabilities from traditional computer hardware and software optimizations.
Innovation Solution
Implementing an FPGA-based trading system architecture with redundant match engines, an Orderer component for transaction sequencing, and a Decider component for result determination, along with a market monitoring system, to ensure deterministic and fault-tolerant operation, while improving performance and capacity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If traditional computer hardware and software optimizations are used, then processing speed is improved, but transactional determinism and fault tolerance are compromised
Solution Approach 1:
The patent replaces traditional software-based order management with a hardware-based FPGA system that uses dedicated circuitry (lookup tables, comparators, counters) to determine transaction order. This hardware substitution eliminates non-deterministic software behavior while maintaining high processing speeds through parallel hardware operations.
Solution Approach 2:
The system divides the order management function into separate hardware modules: lookup tables for storing order information, comparators for determining order sequence, and counters for tracking transaction order. This segmentation allows each module to operate independently and deterministically, ensuring reliable transaction ordering without compromising speed.
2Reliability
If redundant match engines are implemented, then fault tolerance is improved, but device complexity increases
Solution Approach 1:
The patent implements fault tolerance by creating redundant copies of the match engine functionality within the FPGA. Multiple identical hardware circuits can process transactions simultaneously, and if one fails, others continue operation. This copying approach provides fault tolerance without requiring complex coordination between multiple software processes.
Solution Approach 2:
The system merges the redundancy functionality directly into the FPGA hardware architecture rather than adding it as separate software layers. The redundant match engines share the same hardware resources and control logic, combining fault tolerance capabilities with the existing system architecture to minimize overall complexity.
3Reliability
If transaction sequencing is centralized, then transactional determinism is improved, but processing latency increases
Solution Approach 1:
The patent replaces centralized software-based sequencing with parallel hardware comparators that simultaneously evaluate multiple transactions. The hardware deterministically identifies the correct transaction sequence through parallel comparison operations, eliminating the sequential processing delays inherent in software-based centralization while maintaining deterministic ordering.
Data Source
AI summary
The disclosed embodiments relate to implementation of a trading system, which may also be referred to as a trading system architecture, having improved performance which further assures transactional determinism under increasing processing transaction loads while providing improved trading opportunities, fault tolerance, low latency processing, high volume capacity, risk mitigation and market protections with minimal impact, as well as improved and equitable access to information and opportunities.