Changes in Naming Convention For Perpetual Swaps, Futures, and Options

In order to cover dynamically growing crypto derivatives markets, we made a decision to change the naming convention for perpetual swaps, futures, and options.

Starting from October 01st, 2021, the new schema will be in effect in both NY4 and LD4 locations.

The new schema will follow next rules:

security_type:base-asset:quote-asset

Security TypeBase AssetQuote AssetExample
PERP
Perpetual Swap
BTC-PERPBTC
USDT
PERP:BTC-PERP:BTC
PERP:ETH-PERP:USDT
FUTBTC-25MAR22BTCFUT:BTC-25MAR22:BTC
OPTBTC-29JUL21P40000USDTOPT:BTC-29JUL21P40000:USDT

Base Asset is actually the contract bought or sold. 

Quote Asset indicates what asset will be used as a collateral. It could be anything starting from BTC, ETH, followed by stablecoins such as USDT, or even fiat like USD. 

How to Improve Execution in Crypto Markets or XTRD’s Art of Shaving

By XTRD’s Co-Founder and CTO Serg Gulko

Among many technical questions we receive, the latency-related group definitely stands out. Having deep HFT roots, I fully share concerns about this topic. Back in the day, building strategies for FX markets, we were choosing one CPU family over the other, preferring to use switches and routers of certain non-mass-market brands, install and tune very specific network cards, and so on. By the way, we replicated all this in the XTRD eco-system, that is why our NY4 location is equipped with Aristas and Exablaze servers! 

But, of course, all these optimizations should be made only after your code is tuned to perfection. There is no economical sense of burning thousands of dollars on expensive hardware toys while you might have a bigger problem and it’s closer than you think. 

We’ve been consulting several so-called “crypto-first” prop trading shops who bought absolutely top of the line/high cost servers and rented private internet lines from Avelacom (by the way, we also use Avelacom for certain destinations) to shave 4-7 ms of network-added latency. But! And here comes the best part – they had plans to use the CCXT library to trade. Don’t get me wrong, CCXT is a great library and I personally do respect the Open Source community but CCXT is not about HFT! So the fund guys win 7 ms by using high end hardware and private networks but lose sometimes up to 200 ms by using the wrong software.

Why do I think XTRD can do any better? One of our main focuses was – and still are – lowering latency in all possible ways. We analyze exchanges’ APIs, measure execution times, and build our connectors in order to notify clients as soon as possible when something happens.

Let me give you an example. Bittrex has a REST API to submit orders and an event-driven notification channel built on top of the terrible Microsoft SignalR stack. SignalR, in its turn, provides information in “orders” and “executions” channels. Data from the “executions” channel is more informative and useful (at least from our standpoint) but sometimes it comes with 300 (!) ms delay after similar, but less granular, updates in “orders”. What is really funny is that initial responses over the REST API come (sometimes, not always, which makes it even more interesting) faster than confirmations through SignalR. We know all these nuances and our connectors are capable of dealing with such situations. Of course, it creates certain complexity and non-linear logic but this is what we do for living.

Another example – when you cancel an order on Binance, you can rely on WebSocket notifications (which is a very convenient way) but in many cases, the REST API gets you a faster response. How fast? 10 ms! So you’ll know that your order has been canceled 10 ms faster and act on it accordingly. In the HFT world 10 ms is almost an eternity. 

Each exchange has such “Easter eggs” and we know many of them. XTRD combines powerful hardware with a software layer, optimized to “shave” 10 ms here and 45 ms there. If you are committed to win, everything matters – your algo, the way it is coded, servers to run it, the right network to communicate, and a reliable partner to execute. Cut these latencies with XTRD, join the club! 

XTRD Opens Up in LD4 Data Center

We are happy to announce that XTRD’s OEMS for digital asset trading is now available in the Equinix LD4 location – London, UK!

The main reason we did this is to provide access through our low-latency FIX API to major derivative and spot trading exchanges, located in the EU and nearby.

In LD4 we offer the same set of connectivity options as in NY4 – cross-connection, co-location, and VPS connectivity through our partners.

How to configure trading capabilities on XTRD Bookmap Addon

In this article, we’ll describe how to configure trading capabilities on various cryptocurrency exchanges using the XTRD Addon for Bookmap. In case you don’t have this addon yet, here is the link to the document that will guide you through. 

Use the standard Bookmap configuration window to subscribe to a certain instrument, for example, ETH/USDT on Binance. Once connected, you should see a floating window with your positions under management (initially empty):

Click on the blue “TRADING SETTINGS” button in the floating window. It will bring up another window with a list of available and configured trading destinations. 

The Bookmap platform is organized in such a way that you need to have an active market data subscription in order to trade. It’s always possible to add subscriptions through the Bookmap Marketplace

In the “XTRD Trading Settings” window, click on the “CONFIGURE” button for your target trading destination. Depending on the exchange type, you’ll need to enter a combination of Private Key, API Key, and/or Password. Please feel free to reach out to us in case you need assistance obtaining these parameters from your exchange!

Click on the “ADD” button. You’ll be forwarded to the connector’s configuration window. 

“Ready to trade” destinations will have a green light, and a red light indicates that the connection is not established yet. 

Allow about one minute for the system to finish all synchronization such as open orders and positions. Once a connection is ready, the indicator will turn green and all your available assets will be displayed in the “Positions” window.

Congratulations, you now can trade on Binance (and many other exchanges) using the XTRD Addon for Bookmap! 

Important Menu Options

UPDATE – this button will be activated once you decide to update your connectivity credentials.

DELETE – this button will remove the selected exchange from the routing destinations. All open orders will remain open. 

If you would like to quickly convert one currency to another, go to Positions, select base asset (in our case ETH), select a quote asset from the drop-down (for example BTC), and click “CONVERT”. 

All other trading operations, like opening or canceling orders and monitoring trading activities can be performed using the standard Bookmap functionality. 

We prepared a small video with instructions and several trading operations (including cross-checks using an actual Binance GUI). 

XTRD partners with Beeks

XTRD is happy to announce its partnership with Beeks, a leading cloud computing, connectivity and analytics provider for financial services.

This partnership will allow seamless provisioning of virtual private servers (VPS) immediately ready to trade on a variety of digital assets platforms, provided by XTRD. Beeks’ advanced eco-system, managed by their 24/7 Network Operations Centre, will dramatically reduce deployment time and increase the agility of resource provisioning.

As well as VPS based services for our larger trading clients, Beeks can also offer bare metal compute on dedicated servers providing better performance and an increased security layer.

Pete Johnson, Chief Technology Officer at Beeks stated, “As a growing asset class, we’ve had lots of interest in connecting our client base to trade the cryptocurrency markets. We already have several clients and partners in this space and we see the relationship with XTRD as an exciting extension of our capabilities”.

“Trading digital assets include certain complexities, such as protocols, connectivity, settlement, cybersecurity, and proper infrastructure. We believe that our partnership with Beeks Financial Cloud will bring much-needed peace of mind to many of our clients in terms of the deployment process, taking into account Beeks’ level of sophistication. As for the rest – XTRD has you covered.” said Serg Gulko, Co-Founder, and CTO at XTRD.

Beeks is a leading cloud computing, connectivity and analytics provider for financial services. With an international network of eighteen datacentres, Beeks provides end to end outsourcing of compute environments by delivering low-latency compute, connectivity and analytics, on-demand. ISO 27001 certified, Beeks supports its global customers at scale exclusively within global capital markets and leading financial centres.

Different deployment options

Colocation 

Colocation is a deployment of physical hardware in the XTRD rackmounts in Equinix NY4, a primary datacenter utilized by major financial companies and stock exchanges. One of the most secure and efficient (in terms of performance and latency) ways to start trading crypto is by leveraging theseXTRD routing servers at Equinix. 

You can send us your own hardware or rent something from our inventory. XTRD can offer 1U or 2U slots with both managed and unmanaged options. 

With a managed option the XTRD team will take care of your hardware (monitor, component replacement, backups etc), while unmanaged means that it has to be done by your engineers. 

From our experience, if you want to get the best possible performance – colocation is the only choice. With direct access to hardware and software, you can tune servers to outperform virtual instances offered by cloud providers. Of course, it all comes with a price and depends on your end goals. For example, a Honda is a great car to do pretty much everything – travel, commute to work, help your friend to move to another location but if you need to run a race – consider a Ferrari. 

Pros of dedicated managed hardware:

  • Low network latency 
  • High performance
  • High security
  • Full control over the hardware 

Cons:

  • Cost of hardware
  • Cost of hardware maintenance

Cross-connection

If your servers are already in Equinix, another great option is cross-connection. With minimal latency, you can communicate with XTRD’s servers to consume market data and route orders to major cryptocurrency exchanges in the US, Asia, and Europe. 

XTRD’s state-of-the-art network infrastructure based on high-performance Arista switches will deliver FIX messages in and out in no time! 

Pros

  • Low network latency
  • High security 
  • Ability to reuse your own hardware

Cons

  • More expensive than VPN or VPS

VPN

If network latency for you is not an issue, we can offer access to our services through encrypted VPN channels. It’s easy to configure and doesn’t necessarily require purchasing expensive hardware.

With this type of connection, clients are able to access the same resources as cross or direct connection but with a bit higher network latency caused by SSL/TLS encryption. 

This is an ideal set up during the development/integration phase followed by migration to more advanced (and fast) cross-connection or colocation methods. Nevertheless, VPN can still be used for a variety of applications that do not require low latency.

VPS

Virtual Private Server (or VPS for short) is a good alternative to the co-location option. Instead of physical servers, your code will be running inside a virtual machine. This is a perfect option when you just want to do a quick test of your ideas. 

Pros

  • No long-term obligations
  • Hardware knowledge is not required
  • Easy to maintain (backup, restore, destroy)
  • Less expensive

Cons

  • Less tuning options
  • Less performance

VPS deployment options are available through our partners such as UltraFX VPS.

Let us know if you would like to try our services with a no-cost, no-obligation trial period! 

Feel free to reach out to us on LinkedInFacebookTwitter, or via the website at XTRD.IO.

Previous articles:

Reliable Market Data
Normalized Symbology
Normalized API for Trading
Engineering XTRD’s Fort Knox of Authentication

MARKTS partners with XTRD to increase access to digital assets for end-users

NEW YORK: 7/30/2020  – TradingScreen Inc. (TS) subsidiary MARKTS, a cryptocurrency order and execution management system (OEMS), announces today its partnership with XTRD, an orders routing and connectivity provider targeting digital markets, to enable end-users to connect to an additional set of crypto exchanges on the MARKTS platform. 

This integration will enable seamless connectivity to a further 20+ exchanges and expand the already extensive list of venues enabled on the MARKTS platform. The partnership will ensure reliable connectivity for institutional investors to digital assets by providing clients with alternative routes to liquidity and facilitating efficient trading of various top tier coins and tokens.

Through this partnership, MARKTS will address the long-standing issue of reliable connectivity to digital assets for the institutional sector and facilitate multi-venue access.

“In a market where liquidity is fractionated and reliable connectivity is essential, accessing multi-venues is paramount. Alongside our current set of TS connections, XTRD services will provide our clients with choice and key alternative routes to access liquidity.

“We are excited to partner with XTRD which complements our set of institutional-grade connections to various crypto venues,” says Alexandre Carteau, Head of MARKTS.

“We are happy to announce our partnership with MARKTS today to remove the barriers hindering reliable connectivity and access to digital assets for the institutional sector. Through this partnership we will provide institutional-grade solutions for traders of all kinds,” says Serg Gulko, Co-Found, and CTO at XTRD. 

About MARKTS:

MARKTS, a TradingScreen company, is a cloud-based ‘software-as-a-service’ platform that offers users the ability to employ institutional-grade tools to facilitate order routing of digital assets in one integrated and compliant solution. For more information, please visit www.markts.io

About XTRD: 

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. Visit www.xtrd.io for more information.

Engineering XTRD’s Fort Knox of Authentication

When it comes to cybersecurity, especially in the digital asset industry, there is no room for compromises! 

Of course, this is a very hot topic and it’s always easy to talk about it rather than implement it in practice. These are additional procedures to follow, extra techniques to use, more people to hire. We built our systems taking into account the hostile environment where we will operate. Here is a brief overview of what XTRD does in order to protect our clients’ digital assets. 

Restricted access. Our servers are not available over the public internet. In order to trade, clients have to cross-connect with XTRD within Equinix IBX data centers. Another option is to set up a VPN tunnel. In both cases, we know who the customer is. 

Isolated environment for clients. Each client runs their operations within an isolated network segment invisible to other participants. This isolation is controlled by hardware and software layers. 

Components separation. XTRD is built as a modular system (different data buses, routing components, data normalization farm, streamers, databases, monitoring, journaling, and so on) where components are separated by firewalls (if required by business logic). Each component can access only very specific IP addresses and ports. And, of course, no access to the operating environment is available over the public Internet! 

Data encryption. Despite the fact that components are isolated and covered by firewalls, they “talk” to each other only through encrypted channels. Even internally. That’s the rule!

No sensitive information stored as a plain text. We deal with passwords, keys, and other forms of client’s credentials. This information is never stored unencrypted. API calls (yes, we do have REST API for accounts management) never return real data. Logs/journal records are scrambled to avoid unexpected leaks. 

Protected from people’s failure. XTRD uses techniques similar to launch sequences on nuclear submarines – in order to start the system, it required a combined effort of several people. So in case of an unlikely event when one part of the key was compromised, it’s still not enough to obtain access – analogous to a multi-signature wallet concept. 

Authentications and authorization. The majority of XTRD resources require authentication prior to obtaining access. In addition, access to certain resources is limited by a role-based authorization system. 

Journaling and monitoring. All events, big and small, are carefully monitored and added into a journal. We know who was doing what and when. Of course, this information is carefully stored and backed up via tape on separate geographically distant servers. 

XTRD has many more secure controls but we are keeping some of our secrets!  

Let us know if you would like to try our services with a no-cost, no-obligation trial period! 

Feel free to reach out to us on LinkedIn, Facebook, Twitter, or via the website at XTRD.IO.

Previous articles:

Reliable Market Data
Normalized Symbology
Normalized API for Trading

Normalized symbology

The XTRD team has built and maintained a database of normalized symbol names and assets in the digital asset trading space. This may sound like a small thing, but once you begin trading across multiple crypto exchanges things quickly start to become complicated. For example, just the ETH/USDT trading pair is represented as follows across these exchanges:

  • ethusdt on HUOBI
  • ETH/USDT on KRAKEN
  • ETHUSDT on BINANCE
  • 55 on BITMART

Here are additional esoteric naming conventions.

With XTRD, you can subscribe to market data updates through our FIX API using the same symbol name – for example, ETH/USDT – for Huobi, Kraken, Binance, Bitmart, and any other XTRD supported exchange. More importantly, you can trade over XTRD’s FIX using just the ETH/USDT symbol name for all exchanges. All trading messages, all reports – everything is built on top of normalized symbols and assets. XTRD has done the hard work of normalizing naming conventions, so you don’t have to. 

Today XTRD’s database contains 12,659 unique symbols with multiple permutations. This means that you can reach 30+ different digital asset exchanges in almost no time using XTRD’s unified FIX API. 

Being an active member of the FIX Trading Community, we understand the importance of standardization and are awaiting ISO’s decision regarding a global cryptocurrency naming convention. Whenever it will happen – today, tomorrow, or in two years – our systems are designed in a way that allows easy adaptation for diverse primary naming sources. 

Let us know if you would like to try our services with a free, no-obligation trial period! 

Feel free to reach out to us on LinkedIn, Facebook, Twitter, or via the website at XTRD.IO.

Market Data: May 6, 2020

Market data report provided by XTRD FIX API

BINANCE

Binance contains 592 trading pairs consisting of 197 assets

Removed cryptocurrency pairs: 

  • LOOM/BNB
  • POWR/BNB
  • OAX/ETH
  • ONG/BNB
  • BTS/ETH
  • WAVES/TUSD

STEX

STEX contains 423 trading pairs consisting of 330 assets

New coins listed: STS, TNC

Available cryptocurrency pairs: 

BITHUMB

Bithumb contains 192 trading pairs consisting of 138 assets

New coins listed: YSR, SWFTC, XPR, DEP

Available cryptocurrency pairs: 

Removed cryptocurrency pairs: 

  • FF1/BTC

EXMO

EXMO contains 182 trading pairs consisting of 56 assets

Delisted coins: ATMCASH, BTCZ

Removed cryptocurrency pairs:

  • BTCZ/BTC
  • ATMCASH/BTC
  • INK/ETH
  • KICK/USDT
  • DXT/USD
  • INK/USD
  • INK/BTC
  • KICK/ETH
  • KICK/RUB
  • DXT/BTC
  • KICK/BTC

HUOBI

Huobi contains 557 trading pairs consisting of 230 assets

New cryptocurrency pairs: 

BITMEX

Bitmex contains 13 trading pairs consisting of 12 assets

New coin listed: USDM20

Available cryptocurrency pair: 

KRAKEN

Kraken contains 155 trading pairs consisting of 39 assets

New cryptocurrency pairs: 

COINSUPER

Coinsuper contains 81 trading pairs consisting of 61 assets

New coin listed: TNC

Available cryptocurrency pairs: 

BITFINEX 

BITFINEXcontains 293 trading pairs consisting of 160 assets

New coin listed: BTCDOMF0

Available cryptocurrency pair: 

Delisted coins: DAD, SEN

Removed cryptocurrency pairs: 

  • DAD/USD
  • SEN/USD
  • NIO/ETH
  • NIO/USD

CEX.IO

CEX.IO contains 82 trading pairs consisting of 29 assets

New cryptocurrency pair: 

PROBIT 

PROBIT contains 540 trading pairs consisting of 303 assets

New coins listed: XEN, PAA, KALA, DGTX, XANK

Available cryptocurrency pairs: 

New cryptocurrency pairs: 

Removed cryptocurrency pairs: 

  • TPD/BTC
  • TPD/KRW

COINBASE

CoinBase contains 59 trading pairs consisting of 29 assets

New cryptocurrency pair: 

BITMART

Bitmart contains 295 trading pairs consisting of 165 assets

New coins listed: POCBGH, QM

Available cryptocurrency pairs: 

New cryptocurrency pair: 

Delisted coins: AVA, MXW

Removed cryptocurrency pairs: 

  • MXW/USDT
  • AVA/BTC
  • BBK/BTC
  • BCT/BTC
  • BCH/BTC
  • BAT/BTC
  • MATIC/USDT
  • BTT/USDT

HITBTC

HitBTC contains 909 trading pairs consisting of 405 assets

New coins listed: DNA, TNC

Available cryptocurrency pairs: 

Delisted coin: SCD

Removed cryptocurrency pairs: 

  • SCD/DAI
  • PETH/BTC
  • DADI/BTC
  • PETH/USD
  • DADI/ETH
  • PETH/ETH

BITTREX

Bittrex contains 414 trading pairs consisting of 264 assets

New coin listed: HDAO

Available cryptocurrency pairs: 

Delisted coin: CPT

Removed cryptocurrency pair: 

  • BTC/CPT