Design a Stock Exchange Matching Engine · System Design Interview

Design a Stock Exchange Matching EngineDesign the part of an exchange that takes buy and sell orders for one stock and matches them, at the size and latency real markets run at.What it has to do

An order is matched against the best available opposing orders, or rests until one arrives

Orders for the same stock are matched in the exact sequence they were received

Every match produces a trade, and every participant can see the current best bid and ask

Scale

Orders per second at peak, one busy stock: 200,000

Stocks traded: 8,000

Matched trades per day: 2 billion

Out of scope

Clearing and settlement

Account balances and margin

Order types beyond basic limit and market orders

Regulatory reporting

Practise this challengeAll system design challenges

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