Efficient Architectures for Low Latency and High Throughput Trading Systems on the JVM

The motivation for our research starts from the common belief that the Java platform is not suitable for implementing ultra-high performance applications. Java is one of the most widely used software development platform in the world, and it provides the means for rapid development of robust and complex applications that are easy to extend, ensuring short time-to-market of initial deliveries and throughout the lifetime of the system. The Java runtime environment, and especially the Java Virtual Machine, on top of which applications are executed, is the principal source of concerns in regards to its suitability in the electronic trading environment, mainly because of its implicit memory management. In this paper, we intend to identify some of the most common measures that can be taken, both at the Java runtime environment level and at the application architecture level, which can help Java applications achieve ultra-high performance. We also propose two efficient architectures for exchange trading systems that allow for ultra-low latencies and high throughput.