Quantitative Systems

Building Execution Architecture

Guide to low-latency routing, matching workflows, and trading infrastructure that can hold up under production use.

Author

Matthew Jaworski

Reading Time

15 min read

Published

Nov 2024

Building Execution Architecture

The Control Plane

Execution architecture is the immune system of a trading operation. Its primary function is to isolate strategy logic from the physical constraints of the market—latency, throughput, and risk.

System Priorities

Robust systems prioritize determinism over raw speed.

  1. Deterministic Execution: Pre-defined paths for every order state.
  2. Resilient Risk: Guardrails that cannot be bypassed by strategy logic.
  3. Audit-Ready Observability: Full-trace logging for compliance.

Core Components

  • Order Management (OMS): State management and routing logic.
  • Market Data: Normalization of high-throughput feeds (CEX/DEX).
  • Risk Engine: Pre-trade validation and position limit enforcement.
  • Reconciliation: Post-trade settlement and reporting.

What Good Design Produces

  • System Architecture: High-fidelity diagrams and technical specifications.
  • Latency Profiling: Hot-path analysis and optimization plans.
  • Risk Design: Validation of controls against venue constraints.

Practical Next Step

Review the current execution path, control boundaries, and rollback logic together before more strategy complexity is added.

Continue

If this resembles your system, the next useful step is usually a focused discussion.

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