Bitstamp Integrates Nasdaq’s Matching Engine for Faster Order Executions

11 September 2020

Cryptocurrency exchange Bitstamp has implemented a new matching engine from Nasdaq’s technology vendor that it says greatly speeds trading.

  • Announced Thursday, the updated matching engine improves upon Bistamp's previous implementation developed by global provider of exchange and clearing technology Cinnober – since acquired by Nasdaq
  • With the upgrade, "Bitstamp can continue to bolster their capacity, performance and resiliency,” said Andy Green, vice president and head of the EMEA division at Nasdaq Market Technology.
  • The move should help the platform handle high levels of demand during periods of extreme volatility when volume spikes from multiple orders can put a strain on infrastructure.
  • According to research by Bitstamp and crypto market data provider Kaiko, the new engine enables order matching up to 1,250 times faster than with the previous system.
  • The platform’s throughput is also raised by up to 400 times, per the announcement.
  • The improvements are expected to be noticeable by high-frequency traders, while the new infrastructure will enable the exchange to roll out new order types and trading pairs at scale, Bitstamp said.
  • The exchange plans to increase the platform's performance gradually over the next three months, reducing latency on orders placed through their website and app.
  • Potentially, the biggest impact could be to application programming interface (API) trading where the exchange aims to reduce trade execution to under a millisecond.
  • Luxembourg-based Bitstamp recently went live with payment service provider BCB Group's real-time gross settlement system in order to speed up the funding of large client accounts.

See also: Bitstamp to Move Clients’ Accounts From London to Luxembourg

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