We are pleased to invite you to our upcoming webinar How to build your next trading system using XTRD OEMS. We will guide you through the extensive functionality of our FIX API for trading and market data, as well as provide an in-depth explanation on how to seamlessly integrate with our Management REST API. We look forward to sharing our knowledge and insights with you.
Our API has been extended with several new messages: – Order Cancel/Replace Request – Trading Session Status Request
Order Cancel/Replace Request
This message helps modify existing working orders (states New or Partially Filled). It can be used to change price and/or outstanding size.
The command is exchange-agnostic and works for all supported LPs, disregarding that some exchanges don’t support change/amend/update requests.
Trading Session Status Request
This message uses to subscribe to real-time updates about your outgoing connectivity statuses. It is no secret that connections to crypto exchanges are unstable. Our system monitors connectivity statutes and disables trading operations on problematic destinations until a link is up and all orders, positions, and trading history are synchronized.
By using Trading Session Status Request your trading system also can receive notifications when your outgoing connection with, e.g. Binance or Deribit goes down or back online again.
FX Software development company BJF Trading Group, announces today its partnership with XTRD, OEMS for digital asset trading.
This partnership will allow customers to use sophisticated trading algorithms created by BJF Trading Group, across the entire spectrum of cryptocurrency exchanges supported by the XTRD OEMS.
“Digital asset space is still full of different inefficiencies that might be exploited to gain a certain profit. Of course, there is no free lunch, and to get positive results, you must be properly equipped and educated. BJF Trading Group did tremendous work discovering small operational nuances of traditional and crypto markets and turning them into algos. XTRD provides you with the tools that you can use to “test the digital water”, said Serg Gulko, Co-Founder and CEO at XTRD.
Founded in 2000, BJF Trading group is a boutique Forex and Cryptocurrencies software development company that provides solutions for FX trading, specializing in Expert Advisors, Forex indicators, Forex and Cryptocurrencies software and programming for different types of platforms. Their cutting-edge software development skills allow for them to create creative software solutions to any inquiry traders may have. By utilizing market and programming knowledge, BJF provides both product and support solutions for clients. For more information, please visit BJF Trading Group blog.
Founded in 2017 by financial markets trading experts, XTRD is introducing a new infrastructure to allow banks, hedge funds, and large institutional traders easy, reliable access to any cryptocurrency market they choose. By building a low-latency infrastructure with a unified FIX API across multiple liquidity points, XTRD is taking an industry-standard technology used within global financial markets – namely FIX – for over 25 years and introducing it to the cryptocurrency market.
In addition to our order and execution management system for crypto trading, our company provides integration and custom software development services. In this article, I would like to showcase one such project – a latency arbitrage trading system.
The main concept besides latency arbitrage is straightforward. Due to some market fragmentation, different market conditions, jurisdictions, and even trading hours, the selling price for an asset (BID) on one exchange could be lower than the buy price on another (ASK). This means you can buy in one place and sell in another, pocketing the difference.
Latency arb is very similar to what market-makers do, except for the fact that they prefer to rest somewhere in the order book. In our case, the system performs as a pure taker, scooping liquidity from the top of books. As a measure of self-protection, we only used LIMIT orders with minimal resting time (so if an order was not filled, we had to cancel it).
“Simplicity on paper” comes with a price during implementation – everything should be fast. VERY FAST. Price discrepancies appear for just a moment, and you have a limited amount of time to do the following:
Receive market data
Detect arb opportunity
Shoot two orders (to BUY on one exchange and to SELL on another) at the same time
Do not forget about error handling because bad things always happen. For example, one leg gets filled, and the second – is either rejected, partially filled, or stuck in a book.
For obvious reasons, we choose XTRD OEMS for digital asset trading as a market data source and an entry point for all orders. This allows changing trading pairs and exchanges easily without adjusting any of the trading logic.
Here is a simplified application architecture.
Our end goal was to keep the number of elements as low as possible, so we came up with the following topology:
Two independent FIX sessions – one for market data, one for trading
Trading FIX session connected to BuySideOMS, a component to manage order stages
BuySideOMS acts as a hub to receive trading commands and return execution confirmations to the business logic component
Brain is more like a complex events processing (CEP) loop that decides what the next step would be based on current market conditions (received through market data FIX session) and order statuses.
To control and monitor the Brain behavior, we added a REST-based API and a user interface on top of it; the main trick here is that REST API is set aside from the central communication circle – Brain/OMS/Market Data Session/Trading Session.
During development, our team faced several challenges:
Market data processing procedures
Asset settlement and rebalancing across exchanges
XTRD market data dissemination services don’t apply any throttling or batching to outgoing data. This means a recipient must process the data at an extremely high speed to avoid the situation called “slow consumer” when messages start to pile up in outgoing buffers causing memory overuse. Our servers react simply to it – slow sessions will be terminated after some time. An approach to solve this problem is complex and might include the following:
Reduce network travel time by locating as much as possible close to our servers
Increase operation system network buffers on your side – never, never run on a default operating system settings.
Increase the buffer size on the FIX engine. Most FIX engines allow manually setting the size of a queue
Avoid mixing market data processing and business logic in the same thread unless the logic is super simple
As long as there is no centralized clearing in crypto (yes, 2022…), you have to maintain a sizable inventory on both exchanges and settle as infrequently as you can. Your main enemy here is the exchange’s trading and withdrawal fees. Withdrawal fees might include direct fees, applied by exchange, and network fees, so watch out for this. From a distance, these numbers might look small, but the profit from arb is also not that big, so you have to perform multiple successful trades. If you do not have enough inventory, you have to rebalance it, and this is the point where withdrawal commissions can erode your trading profit. If you have big books on both sides, you can enjoy the ride!
Asset transfer itself is a challenge. Initially, our client was planning to do crypto vs. fiat arbitrage. To rebalance fiat, we planned to use a solution from a company that is exceptionally aggressive on the marketing side, promoting things they do not have. This is an untrustworthy company, so to speak. Only one step away from production, we realized it had a gap. The solution – switch to stablecoins.
For crypto rebalancing, we were in a position to buy vs. build. A top candidate here was Fireblocks. It certainly has a working product, but the price(access + API) was far beyond our allowed budget. The solution – we built a simple exchange to exchange rebalance.
Now pride time (technological, not coming out) – the system was able to hit the top of the book prices on Kraken and OKCoin in most cases, even when located in Equinix NY4 data center. It was a double pride – the trading app we built was fast, and XTRD OEMS was blazing fast. During the course of development, we navigated multiple technological, jurisdictional, and organizational challenges that our team successfully resolved.
As a footnote, does latency arb still exist in crypto? Yes, it does. Can you exploit it? Possibly. But aside from latency arbitrage, many other trading ideas can be implemented on top of XTRD OEMS.
If you have any questions (OEMS itself, custom software development services, etc) – feel free to reach out, and we will do our best to assist you.
Brokeree Solutions, a turnkey solutions developer for multi-asset brokers, has just announced the integration of its flagship Liquidity Bridge with XTRD – an orders and execution management system (OEMS) for digital asset trading with a strong focus on low-latency and high-throughput execution.
Multi-server Liquidity Bridge is a comprehensive solution that combines advanced A/B book order execution, smart liquidity aggregation, and risk management. With this integration, brokers may introduce new crypto instruments for their clients on MetaTrader 4 and 5 platforms via the market data and liquidity provided by XTRD.
“We provide access to major US, Asia, and Europe exchanges. By leveraging our stack, clients can easily increase their liquidity offering by adding new LPs from the management panel without spending weeks for integration followed by neverending maintenance,” said Serg Gulko, CEO of XTRD. “I came to the digital asset space from FX and am familiar with the challenges market participants are facing. Our common effort with Brokeree pivoted toward helping MT4/MT5 brokers reduce their costs, increase profit margins, and help them keep the competitive edge by providing new trading instruments to their clients without investing a fortune in R&D.”
XTRD is an institutional-grade OEMS for digital asset trading. It provides a unique combination of services, such as FIX API for digital asset trading, real-time normalized market data feeds, low-latency execution services, and a secure environment inside Equinix data centers.
“In the liquidity aggregation field, especially in volatile markets such as crypto, it’s crucial to use comprehensive technologies with robust risk-management features. By integrating with brands like XTRD, we can deliver our clients with accessible high-grade technology,“ shared Brokeree in the press release.
Brokeree Solutions is a technology company specializing in solutions development for multi-asset brokers running MetaTrader 4 and 5, trading platform servicing, and consultation.
Established in 2013, the company has developed over 50 products, including liquidity management software, investment systems, and a wide range of plugins to automate and optimize certain internal processes of financial brokerages.
We are pleased to announce that KuCoin is now available through our FIX API. XTRD OEMS for digital assets trading allows receiving normalized market data and actively trading on KuCoin’s markets using unified FIX 4.4 end-point.
Launched in 2017, KuCoin is a crypto exchange headquartered in Seychelles. Since its founding, it’s grown to be one of the largest global exchanges by trade volume, and it now has over 10 million users and a presence in more than 200 countries.
KuCoin offers a huge selection of cryptocurrencies and relatively low fees compared to other crypto exchanges. It also supports staking and margin, futures, and P2P trading, which may appeal to more experienced users.
Enabling institutional traders to easily access and trade Bitget’s products
XTRD is pleased to announce its partnership with Bitget, one of the leading derivatives exchange, to enable institutional traders to easily access Bitget’s products and trade with programme trading, benefiting the expansion of user base with more institutional users.
Commenting on the cooperation, Managing Director of Bitget, Gracy Chen said, “We are glad to partner with XTRD, an expert in building trading corridors between institutional users and exchange platforms. This partnership will enable us to better meet investors’ demands for fast transaction, precise and timely data and asset security.”
“Institutions are in a constant search for quality liquidity and solid product offering and we believe that Bitget will fully fulfill their expectations. Bitget is very dynamic and we are happy to have them as an integral part of our OEMS for digital asset trading,”said Serg Gulko, CEO of XTRD.
“As the crypto market matures with increasing institutional participation, demand for crypto derivatives trading is huge. We are better positioned to extend our services and products to a new user base and attract more institutional investors. Looking forward, we will make persistent efforts to hone our products and cooperate with more partners specialised in different fields to benefit from their expertise,” said Gracy.
According to a recent report by BCG, Bitget and Foresight Ventures, the quarterly crypto derivative trading volume expanded twelvefold to $6.3 trillion in the two years to the first quarter of 2022. Institutional investors come to derivative trading for different benefits, such as flexibility to apply more trading strategies and higher capital efficiency.
Equipped with innovative futures trading products and social trading services, Bitget has become one of the world’s largest crypto derivatives and copy trading exchanges, ranking top five in the globe according to CoinGecko. Its flagship product, One-Click Copy Trade has amassed over 55,000 professional traders and around 1.1 million followers with its copy trading products. Recently, the exchange also launched its protection fund to rebuild the trust of investors in a gloomy market.
Established in 2018, Bitget is one of the world’s leading cryptocurrency exchanges with a core focus on social trading. Currently serving over two million users in more than 50 countries around the world, Bitget accelerated its mission to promote decentralised finance with a 600-strong workforce.
Since Bitget’s official launch in the crypto derivatives market in June 2019, the platform has now become one of the world’s largest crypto copy trading and derivatives exchanges, and is ranked in the top five globally by CoinMarketCap and CoinGecko for derivatives trading by volume. The leading exchange focuses on transforming the way people connect and trade with social trading. Its flagship offering, One-Click Copy Trade, is nothing short of a pioneer in social trading, and has amassed over 55,000 professional traders, with approximately 1.1 million followers, innovating the experience for crypto derivatives traders worldwide.
Adhering closely to its philosophy of ‘Better Trading, Better Life’, Bitget is committed to providing comprehensive and secure trading solutions to users globally, aiming to be the portal that transcends Web2 and Web3, that connects CeFi and DeFi, resulting in an expansive bridge to the vast web of crypto. In September 2021, Bitget announced its sponsorship of world-renowned football team Juventus as its first-ever sleeve partner and PGL Major’s official esport crypto partner soon after. Partnerships with the leading esports organisation, Team Spirit, and Turkey’s leading and long-standing football club, Galatasaray, were also announced in early 2022.
We are happy to announce that WhiteBIT is now available through our FIX API. XTRD OEMS for digital assets trading allows receiving normalized market data and actively trading on WhiteBit’s markets using unified FIX 4.4 end-point.
Launched in Dec 2018, WhiteBIT is a European centralized exchange that offers crypto-to-crypto and crypto-to-fiat transactions with 0.1% trading fees.
With European Exchange and Custody licenses, WhiteBIT meets KYC and AML requirements. It claims to have 150,000+ users from the EU, South America, and Asia registered on the platform.
WhiteBIT offers instant transactions with P2P codes, possibility of staking, private and public API & a number of trading tools: limit, market, stop limit and stop market orders. Quick deposits and withdrawals are carried out with InstantSend by Dash.
We are happy to announce that from now CoinFLEX is available through our FIX API. XTRD OEMS for digital assets trading allows receiving normalized market data and actively trading on CoinFLEX’s markets using unified FIX 4.4 end-point.
CoinFLEX (Coin Futures and Lending Exchange) is a physically delivered cryptocurrency futures exchange, developed for investors to hedge cryptocurrency exposure with low index or price settlement risk.
The platform offers innovative solutions such as flexUSD — the world’s first interest bearing stablecoin — and AMM+, the most capital–efficient automated market maker for today’s investors. CoinFLEX is backed by crypto heavyweights including Roger Ver, Mike Komaransky, Polychain Capital, and Digital Currency Group, amongst others. The exchange is dedicated to providing an easily accessible venue for users to earn and trade crypto with minimal friction.