JSE Matching engine simulator

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Date

2017

Authors

Sing, Dharmesh

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Abstract

The Johannesburg Stock Exchange (JSE) started High Frequency Trading when their matching engine moved from London to Johannesburg in 2012. The study of market microstructure at the JSE is not possible without access to their matching engine. This dissertation investigates the challenges of studying market microstructure and describes the design and implementation of an open source matching engine. CoinTossX was developed as an open source low latency high throughput stock exchange. The software was developed in Java and used open source libraries. The software is tested using an 8-variate mutually-exciting Hawkes process to govern the times of coupled liquidity demand and supply events, while trade and quote prices and volumes are generated consistent with the event type. The testing showed that CoinTossX is able to support multiple clients, stocks and matching algorithms.

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A dissertation submitted in fulfilment of the requirements of the degree of Master of Science in the School of Computer Science and Applied Mathematics. June 11, 2017

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Sing, Dharmesh (2017) JSE matching engine simulator, University of the Witwatersrand, Johannesburg, https://hdl.handle.net/10539/25136

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