McObject’s eXtremeDB Financial Edition Database Adopted by TradeStation for Next-Generation Order-Execution System

News Wire

McObject announced that TradeStation, a Monex Group company (TSE: 8698) and the parent company of an award-winning broker-dealer and futures commission merchant, will integrate McObject’s eXtremeDB Financial Edition in-memory database system (IMDS) into its next-generation order-execution system, now under development. McObject’s technology was selected after it performed “an order of magnitude” faster than alternative database systems in a proof-of-concept, indicating that eXtremeDB Financial Edition will extend the speed advantage already provided to TradeStation’s customers, a TradeStation official said.

TradeStation’s order-execution system processes trades from the moment orders are placed until they are filled and recorded. Database processing must be extremely fast to avoid introducing latency. Between order placement and execution, the order-execution system accesses its database many times to accomplish time-critical tasks ranging from checking customer funds and margin limits to risk management, order routing and comparing bids and offers on different trading venues.

“Milliseconds, even microseconds, can affect the price for customers’ order executions,” said Joe Pautler, TradeStation senior software engineer. TradeStation presents order-execution speed as a key differentiator of its services, noting on its website the “price improvement opportunities” made possible by trade processing that is many times faster than the industry average.

In addition to speed, reliability is a key requirement for database management within TradeStation’s order-execution system. TradeStation’s website states that it “relentlessly pursues [its] goal of 100 percent uptime” for order execution via redundant system hardware and software, among other strategies to maximize up-time.eXtremeDB Financial Edition enhances reliability with its High Availability sub-system, which will enable TradeStation to deploy multiple, fully synchronized copies of the order-execution system database, with automatic failover in the event of failure on one node.

“TradeStation built its reputation on technology features that benefit active traders, including innovative analysis, back-testing and automated trading,” said T. Keith Black, TradeStation chief technology officer and vice president of product development. “Traders who rely on these strengths also expect fast and reliable order execution. eXtremeDB Financial Edition’s performance and fault-tolerance make it a natural fit for database processing in the enhanced order-execution system TradeStation is developing. We are excited about the end-user benefits that eXtremeDB Financial Edition will help to deliver as part of our live trading technology,” Black said.

To further safeguard reliability and data integrity in the order-execution system, TradeStation will also rely on botheXtremeDB Financial Edition’s support for ACID (Atomic, Consistent, Isolated and Durable) database transactions, as well as the technology’s transaction logging feature, to enable recovery of interrupted transactions. The company will deploy the 64-bit version of McObject’s database running on Microsoft Windows Server.

“Companies in capital markets are pressed to drive down latency at all levels in their information systems, while providing customers with a wider range of capabilities as well as fault-tolerance,” said Chris Mureen, McObject’s chief operating officer. “McObject designed eXtremeDB Financial Edition to meet the demand in capital markets for an exceptionally fast, scalable and robust database system, and we are pleased that it has proven an excellent fit for TradeStation as the company develops its highly optimized next-generation trading infrastructure.”

eXtremeDB Financial Edition provides features to optimize capital markets systems for speed, fault-tolerance and scalability. These features include:

  • A core in-memory database system (IMDS) that delivers database responsiveness measured in microseconds
  • Embedded architecture to eliminate client/server inter-process communication (IPC) overhead
  • Support for column-based as well as traditional row-based data layout (including hybrid designs)
  • A rich library of vector-based statistical functions to analyze time-series data
  • An ultra-short execution path (code size is approximately 150K) that minimizes demand for CPU cycles and maximizes L1/L2 cache efficiency
  • Distributed database scalability, performance and fault-tolerance, through both Clustering and High Availability sub-systems
  • Multiple application programming interfaces (APIs) including standard SQL and faster, type-safe native C/C++ API (native Java and C# APIs are also provided).