Connamara Technologies

We are continually enhancing the functionality and performance that EP3 offers exchange operators. In response to customer feedback, EP3 now supports the following:

Improved Performance Observability

EP3 now produces additional Prometheus metrics that allow exchange operators to monitor and alert on end-to-end performance of order entry. These metrics measure the time from order arrival at the FIX Gateway to the publication of the FIX execution report acknowledging the order. 

Dependent Services Health Checks

All EP3 services implement the gRPC Health Check Interface. This allows developers utilizing any EP3 API to first determine the health of dependent services prior to interacting with the API. 

Performance Updates

Several performance updates were made to EP3 and EP3 components during March including: the reduction of message size on the critical path to decrease message bandwidth and increase throughput, updating of decimal libraries to increase order entry throughput and performance, improved the time to recover services when there are large numbers of users and accounts present in EP3, and improved database query performance.

Banking Service Enhancements

The Banking Service manages deposit and withdrawal workflows between EP3 and commercial banks. Several functional enhancements were made including making it easier for Exchange Operators to verify cash held in a commercial bank account versus the value recorded in EP3.

Trading API Update

Exchange Operators can now implement manual or automatic order approval workflows by previewing orders before submission  to the matching engine.

Learn more about how EP3 can power your exchange.

Today, Connamara Technologies announces the release of the new Trade Clearing API for EP3. 

An exchange using a central limit order book is responsible for managing the transaction that occurs when the price of a buy order matches that of a sell order. What happens next, post trade, is the clearance and settlement of the trade. This is, among other things, where the buyer transfers the funds used to buy the asset to the seller, and the seller transfers the purchased asset to the buyer. This process is loosely called Trade Clearance and Settlement.

While EP3 does provide the functionality for the clearance and settlement of trades made in the EP3 matching engine, some Exchange Operators choose to use third-party clearing and settlement services for this process. 

Because EP3 offers the Trade Clearing API, Exchange Operators can create the workflows and interactions necessary to utilize the services of third-party clearing providers.

The EP3 Trade Clearing API allows exchange operators to interact with third-party clearing platforms by: 

• Reporting to the clearing platform
  • New transactions and block trades made on EP3
  • The cancellation of previously reported trades
• Receiving reports from the clearing platform of
  • Trades that have been rejected by the clearing platform
  • Cleared volumes and open interest for instruments traded on EP3

At Connamara Technologies, we continually strive to improve how our customers interact with the EP3 platform. A key pattern we put in place when we first designed EP3 was to allow our customers to interact with the functionality and data within EP3 via a set of well-defined and easy-to-use APIs. 

Learn more about the EP3 Trade Clearing API.

We are continually enhancing the functionality and performance that EP3 offers exchange operators. In response to customer feedback, EP3 now supports the following:

1. Halt all markets from Admin UI

Exchange Operators can now halt all the markets open on EP3 with a single button click. This gives the exchange operators more control over their markets. For those customers that design and implement their own custom user interfaces and workflows this functionality is also available via an EP3 API endpoint. 

2. Admin UI White Labeling

Exchange Operators can now white label the EP3 Admin UI with their company’s custom logo, color palette, and tag line text. The logo is displayed at the top of the navigation bar and also serves as the favicon for the page.

3. Account Product Level Open Position Limits 

The open position limits for participant accounts can now be set at the Product Level in addition to the Instrument Level. This improves operational efficiency for those Exchange Operators that have large numbers of instruments that are of the same product. The limits can be set manually using the EP3 Admin UI or automated via an API endpoint. 

4. Enhanced Commission Flexibility

Updating EP3’s powerful rule-based commission model, exchange operators can now create a rule to apply a commission only to certain account types or a rule to exclude a commission from applying to certain account types.

5. Various Performance and Reliability Enhancements

The team at Connamara Technologies is always looking to improve the already high performance and reliability of EP3. This includes both pre-trade order entry and the often overlooked post-trade processing. 

1. Improvements in post-trade reporting of trades when customers experience a spike in the number of trades per second.
2. Improved database resilience and data integrity during failover.
3. Increased the performance of the EP3 Order Routing FIX API by removing message logging from the critical path for order entry.
4. Improved the performance of the service that evaluates the outcome of an event contract to determine the winner. 

Learn more about how EP3 can power your exchange

Today, Connamara Technologies announces the release of the new Back Office API for EP3. 

Exchanges that receive or distribute funds need a means to access the records of that activity for downstream workflows for reporting, account reconciliation, or audits. 

These downstream workflows can be implemented using third-party applications or applications built by the exchange operator’s in-house team. 

Because EP3 offers the Back Office API, exchange operators can integrate with third-party accounting systems and create applications and workflows bespoke to fit the specific needs of the back office and accounting teams of the exchange. 

The EP3 Back Office API allows exchange operators to: 

• Get all deposits for an account over a date time range
• Get all withdrawals for an account over a date-time range
• Integrate with third-party accounting systems to create journal entries for account deposits and withdrawals
• Create reports to show:
  • The amount in trading commissions a participant firm earned over a period of time.
  • The amount in trading commissions an exchange clearing member firm earned over a period of time.
  • The amount of exchange fees an exchange earned over a period of time.
  • The amount of clearing fees an EP3 clearing house earned over a period of time.

At Connamara Technologies, we continually strive to improve how our customers interact with the EP3 platform. A key pattern we put in place when we first designed EP3 was to allow our customers to interact with the functionality and data within EP3 via a set of well-defined and easy-to-use APIs. 

Learn more about the EP3 Back Office API.

Today, Connamara Technologies announces the release of the new Settlement Price API for EP3. 

Regulated derivatives and other exchanges may be required to set a Daily Settlement Price for each contract, along with a Final Settlement Price when the contract expires. The setting of these prices is crucial as in many cases, it will trigger the transfer of funds between exchange participants. 

While setting a settlement price is ubiquitous, the method used to determine its value can vary significantly between different asset classes and exchanges.

Because EP3 offers the Settlement Price API, exchange customers can implement a bespoke settlement price calculation strategy – tailored to their asset classes and the market they are serving. 

The EP3 Settlement Price API allows EP3 exchange customers to: 

• Access pricing data of assets traded by the exchange on EP3
• Create a custom settlement price calculation and approval workflows
• Set the Daily and Final Settlement Prices for assets traded on their exchange

At Connamara Technologies, we are continually striving to improve how our customers interact with the EP3 platform. A key pattern we put in place when we first designed EP3 was to allow our customers to interact with the functionality and data within EP3 via a set of well-defined and easy-to-use APIs. 

 Learn more about the EP3 Settlement Price API.

We are continually enhancing the functionality and performance that EP3 offers exchange operators. In response to customer feedback, EP3 now supports the following:

Maker / Taker Fees / Commissions

EP3 already has a robust, rules-based commission structure that allows customers to set trade commissions in several ways. Exchange operators can now set up a Maker/Taker Commission schedule to encourage exchange users to rest liquidity in the market, such as offering rebates (negative commissions). 

Product Level Commissions

Commissions can now be set at the Product Level, which benefits exchanges that list a large number of related instruments. This new feature improves exchange operators’ operational efficiency. 

Improved Scalability, Availability, and Fault Tolerance of the EP3 Instrument Server

The EP3 instrument server provides details on the tradeable instruments in EP3 and manages their trading schedules. Think of it as a security master. The latest enhancements allow the EP3 Instrument Server to be deployed in a multi-replica configuration, leveraging Kubernetes for scale, load balancing, and fault tolerance.

Corporate Actions Support

Customers have requested that EP3 provide support for certain corporate actions. EP3 now offers new functionality for stock splits and dividends. Via the EP3 Admin API, exchange operators can indicate that a corporate action is in progress, which will be communicated to market participants over FIX market data. Stay tuned for more updates to this functionality. 

Learn more about how EP3 can power your exchange

As Connamara Technologies looks back at 2024, we are grateful and humbled by a year of truly remarkable achievements and continued growth for our EP3® matching engine and platform. Connamara Technologies was founded in 2022, and we are thrilled to share that last year was our best yet. We look forward to all that 2025 will bring to our trusted clients and partners. 

 In 2024, EP3 was the technology behind the only 2 approved US futures exchanges (DCMs). And, as of December 31, 2024, 60% of DCMs currently awaiting approval rely on EP3 for their exchange technology. These include exciting new markets for commodities and events contracts.

Here’s a look at some of the key milestones and moments that shaped our journey:

A Viral Moment: EP3® and ForecastEx on Election Night

This watershed moment for our matching engine and trading platform was a crowning achievement of our year back in November 2024. Working in concert with ForecastEx’s internal teams, Connamara Technologies’ engineers monitored systems around the clock, ready to respond to surges in trade volume with precision and expertise. The team’s commitment went beyond standard duty, ensuring unparalleled service during this first-in-a-lifetime historic trading event. 

Read the full story of this viral moment here: 

EP3® Technology Powers $560 Million in U.S. Election Contracts: The Invisible Engine Behind ForecastEx’s Fast-Growing Predictions Market

Transformative Partnerships

• BEE4 became Brazil’s first regulated tokenized stock market thanks to EP3 technology: BEE4, an over-the-counter (OTC) market for small and midsize enterprises (SMEs) and Brazil’s first authorized infrastructure to trade tokenized stocks saw the upgrade and re-launch of its tokenized stock market project, powered by EP3. Watch the case study video below, or read about how we leveraged our technology to support their long-term evolution.

• Zero Hash implements its digital asset platform, powered by EP3: In October, Connamara Technologies and Zero Hash announced that Zero Hash successfully implemented its digital asset platform, powered by the proprietary EP3® matching engine. EP3’s flexibility allows Zero Hash to explore new use cases, further solidifying its position as the leading infrastructure provider for start-ups, enterprises, and Fortune 500 companies, powering a diverse range of use cases: cross-border payments, commerce, trading, remittance, payroll, tokenization, wallets and on and off-ramps. Read the full press release here. 

Connamara Technologies Equips Zero Hash with Cutting-Edge Exchange Platform

• Google Cloud Partnership: In May, Connamara Technologies announced that it joined Google Cloud at the partner level for the Build engagement model. This gives Google Cloud customers the ability to create financial exchanges and other exchange technology solutions that are built with and run on Google Cloud. Read about key features here.

Industry Engagements

• Conferences, Panels, and Sponsorships: In 2024, Connamara Technologies was seen at dozens of conferences around the world. Top highlights included:
  • Sponsoring the Pickleball Clinic at FIA BOCA at The Boca Raton.
  • Co-Founder James Downs speaking on the “How to Leverage Technology to Enhance Environmental Markets” panel at the Environmental Markets Association Annual Meeting
  • Co-Founder James Downs speaking at Amazon Web Services HQ in NYC on the “Trading in the Cloud” panel at a semi-private event, titled, “Modernizing the Trade Lifecycle” 
  • Attending Consensus 2024 in Austin, where we got to see Mike Cagney (of Figure Markets, an EP3 customer) speak on “The Exchange of Everything.”

The Phrase on Everybody’s Lips at Consensus 2024: “Tokenization of Real-World Assets” 

Media Appearances and Webinars:

• Our founders, James and Maureen Downs, collaborated with The Association of Futures Markets (AFM) and market intelligence firm Acuiti to lead an on-demand webinar titled “Building the Future of Exchanges: How Technology Enables Growth.” Watch the full free webinar here.
• Our founders also appeared on the Exchange Invest IPO-VID Livestream to speak with Patrick L. Young on an episode titled “The Future of Exchange Matching Engines.”

• Maureen Downs also got to share a bit of exchange history on the SmarterMarkets podcast. See the video here.

Connamara Technologies Co-Founder & CFO, Maureen Downs, Interview with Smarter Markets at FIA Boca

• Award Nominations: Our EP3 matching engine was nominated for three awards this year. We were honored to attend all of these award ceremonies in-person and connect face-to-face with our fellow nominees and leaders in exchange technology.
  • Disruptor of the Year 2024 at the U.S. FinTech Awards
  • Best Matching Engine at the 2024 Benzinga FinTech Deal Day Awards
  • Best Matching Engine for Exchanges and Electronic Trading Venues at the 2024 TradingTech Insight Awards USA

New Features and Functionality for EP3

2024 was a year of significant upgrades for EP3, with enhancements focused on user experience, efficiency, and adaptability to meet the dynamic needs of the market. We made nearly a dozen upgrades to future-proof and enhance our product. Find out more details here.

Four Key Functionality Upgrades EP3 Delivered in 2024 

Thought Leadership

• Acuiti Study: Connamara Technologies sponsored market intelligence firm, Acuiti’s whitepaper report on Building Competitive Technology for Exchanges of the Future. This study was shared around the industry in trade papers like Waters and TabbForum, JLN News and more. The fascinating findings, which surveyed and interviewed 58 senior executives at derivatives exchanges from around the world, can be downloaded here.

Report: Building Competitive Technology for the Exchanges of the Future

• The Ultimate Guide: Our team self-published The Ultimate Guide to Exchange Technology, which is a quick and easy explainer on the elements of comprehensive exchange infrastructure, tips for accelerating the launch of your exchange, crucial questions to ask a potential infrastructure partner and what to expect during the exchange design and build process. Download our free e-booklet here.

The Ultimate Guide

Last year, Connamara Technologies made significant strides in improving EP3, not just in performance—enhancing reporting speeds, pre-trade risk, scalability, and transaction throughput—but also in functionality.  By analyzing the ever-evolving landscape of the exchange world, staying on top of what innovators need most, and building features through our discovery process, we made immense expansions to our matching engine product and platform’s capabilities.

Enhanced and Streamlined Exchange Operations

We focused on making exchange operations smoother and more efficient:

• Block Trade Submission Improvements: Streamlined the submission process for exchange operators.
• 24/7/365 Exchange Support: Updated Trade Date functionality and end-of-day market actions, making it easier for exchanges to operate continuously.
• Bulk Settlement Price Management: Simplified end-of-day workflows by enabling operators to bulk upload and approve settlement prices.

Advanced Risk and Compliance Management

Risk management and regulatory compliance remain at the core of EP3. This year, we delivered several impactful upgrades:

• Omnibus Account Support: Helped Futures Commission Merchants (FCMs) manage accounts more efficiently.
• Position Limits: Introduced account-level limits to enhance pre-trade risk management.
• Pre-Trade Risk for Event Instruments: We have added support for Binary and Continuous payouts, empowering customers to design creative event contracts.
• Regulatory Report Enhancements: We introduced support for spreads, improving compliance with regulatory standards.

Greater Integration and Flexibility

We expanded EP3’s adaptability to meet diverse needs:

• Multiplatform CPU Support: Enabled customers to select their preferred CPU architecture, improving cost-efficiency and performance.
• Banking Integration: Added support for J.P. Morgan Chase to complement existing BMO Harris infrastructure, providing more options for managing exchange collateral accounts.

Customizable Revenue Options and New Capabilities

We’ve made it easier for exchanges to tailor their revenue models and grow their business:

• Flat Fee Commissions: Introduced a new commission model, giving customers the flexibility to structure fees that suit their needs.
• Clearinghouse Technology Licensing: Expanded EP3’s offerings by making our clearinghouse technology available for licensing, opening new opportunities for emerging exchanges.