ECHO Platform Use Case


Low Latency Crypto Liquidity Provider Engine and Arbitrage Trading Systems with ECHO

The Challenge

Our client aimed to develop an advanced, fully automated trading application capable of executing strategies as a liquidity provider and automating arbitrage trades across multiple exchanges, counterparties, and venues simultaneously. The primary goal was to create a high-performance system with ultra-low latency trading capabilities, connecting directly with liquidity providers such as Galaxy, Wintermute, and CDRW through FIX APIs provided by Reactive Markets and 4OTC.

This ambitious project required the development of comprehensive trading logic and the construction of a flexible web-based user interface for seamless trading and risk management.

Project Requirements

  • Ultra-low latency trading execution
  • Multi-exchange connectivity
  • Real-time position management
  • Advanced arbitrage algorithms
  • Secure web-based interface
  • Mobile-responsive design

Our Solution

Leveraging the robust connectivity and advanced features of the ECHO Platform, we delivered a sophisticated solution that allowed our client to execute across numerous coin pairs on various crypto venues with unparalleled speed and precision.

FIX API Connectivity

We seamlessly integrated with FIX APIs provided by Reactive Markets and 4OTC, enabling direct access to liquidity providers such as Galaxy, Wintermute, and CDRW. This integration allowed for real-time trading with ultra-low latency, crucial for liquidity provision and arbitrage.

Custom Backend Trading Logic

Our team developed comprehensive trading logic leveraging ECHO's advanced trading backend capabilities. This included strategies for maker or taker optimization, executing arbitrage trades, and generating complex order structures to capitalize on spread opportunities across various cryptocurrency and forex pairs.

Real-time Position & Risk Management

A key element of this application was the requirement of a real-time position and risk management system, implementing Drop Copy and various account-level position metrics. This allowed us to calculate and visually report position sizes dynamically across various coins, currencies, and venues while ensuring positions were fully hedged and managing position limit risk effectively in trading executions.

Web Application with Enhanced Security

The web application, built using React.js and Next.js, served as a powerful interface. It offered an intuitive and feature-rich trading experience, with advanced components ensuring ease of use. The responsive design enabled access from both desktop and mobile devices. We enhanced security by implementing Ory as an external login provider, ensuring that only authorized users had access to the trading application, safeguarding sensitive trading data.

Technology Stack

The web application, built using React.js and Next.js, served as a powerful interface offering an intuitive and feature-rich trading experience. The responsive design enabled access from both desktop and mobile devices with advanced MUI and DevExtreme components ensuring ease of use.

ECHO Platform
React.js
Next.js
FIX Protocol
MUI Components
DevExtreme
Ory Authentication
Real-time WebSockets

"Working with EC was fantastic from start to finish. They were professional from the beginning, completing exactly what I needed in a timely manner. They are super thorough and thought of a lot of things that I didn't. Very knowledgable in financial markets."

Results & Impact

By seamlessly connecting with liquidity providers and executing strategies with millisecond precision, the application facilitated efficient liquidity provision and arbitrage opportunities.

Platform Performance

The custom-built backend trading logic, coupled with the user-friendly web interface, enabled comprehensive risk management and complex order execution capabilities.

Ultra-Low Latency
Achieved sub-millisecond execution times across all trading venues, ensuring optimal arbitrage opportunity capture.
Critical for high-frequency strategies
Multi-Exchange Connectivity
Seamless integration with multiple liquidity providers and exchanges through robust FIX API connections.
Expanded trading opportunities
Position Risk Dashboard
Advanced position tracking and risk metrics with dynamic hedging capabilities across all trading venues.
Enhanced portfolio protection
Automated Strategy Execution
Sophisticated algorithms for liquidity provision and arbitrage with minimal manual intervention required.
Operational efficiency gains

Key Business Outcomes

This project showcased the exceptional capabilities of the ECHO Platform in delivering high-performance trading solutions for the dynamic cryptocurrency markets.

Enhanced Liquidity Provision: Enabled efficient market making across diverse cryptocurrency pairs with optimized spread capture.
Robust Risk Controls: Implemented comprehensive position monitoring with real-time hedging and limit management.
Scalable Architecture: Built on ECHO Platform foundations ensuring future expansion capabilities and technology adaptability.
Secure Operations: Enterprise-grade security with Ory authentication and encrypted data transmission protocols.

Project Summary

The custom-built backend trading logic, coupled with the user-friendly web interface, enabled our client to manage risks, execute complex orders, and explore spread opportunities across diverse cryptocurrency pairs. This project showcased the exceptional capabilities of the ECHO Platform in delivering high-performance trading solutions for the dynamic cryptocurrency markets.

Interested in a similar trading solution? Our team can build custom high-performance trading applications tailored to your specific requirements.

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