Exchange Infrastructure

Question

Is there any reference document on how the infrastructure at an exchange works? I know the implementation at different exchanges are different and there is no one size fits all. But is there any general framework as to how exchanges issue order acknowledgements, trade confirmations, perform risk and margin account checks etc?

Edit: Given the comments, I am trying to be more specific. I am looking for literature on how an exchange sends order ack, trade report and the life-cycle of an order and how does an order interact with various elements of exchange infrastructure.

Best

Answer 1

Programmatically each of these systems - order management, matching, trade management, clearing, external reporting & internal reporting take the order message and stamp it with information as it moves through it's life cycle.

Depending on how decoupled these systems are each system is written in it's creators choice of language and APIs are developed to enable other systems to communicate with it. (Order management, matching & trade management often exist within one system whilst the others are peripheral)

e.g A Trade message created inside a matching engine will be accessed by a back office system and stamped with name give-up details and communicated back to the trader via the order management system. The order status will also be updated. Once the trade has been cleared and reported the trade message will be updated again, and these updates communicated to the trader via order management.