DBO: Response Time Fairness for Cloud-Hosted Financial Exchanges

In this paper, we consider the problem of hosting financial exchanges in the cloud. Financial exchanges require predictable, equal latency to all market participants to ensure fairness for various tasks, such as high speed trading. However, it is extremely difficult to ensure equal latency to all ma...

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Bibliographic Details
Published inarXiv.org
Main Authors Goyal, Prateesh, Gupta, Eashan, Marinos, Ilias, Zhao, Chenxingyu, Mittal, Radhika, Chandra, Ranveer
Format Paper
LanguageEnglish
Published Ithaca Cornell University Library, arXiv.org 29.03.2023
Subjects
Clocks
Computer networks
Network latency
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Summary:In this paper, we consider the problem of hosting financial exchanges in the cloud. Financial exchanges require predictable, equal latency to all market participants to ensure fairness for various tasks, such as high speed trading. However, it is extremely difficult to ensure equal latency to all market participants in existing cloud deployments, because of various reasons, such as congestion, and unequal network paths. In this paper, we address the unfairness that stems from lack of determinism in cloud networks. We argue that predictable or bounded latency is not necessary to achieve fairness. Inspired by the use of logical clocks in distributed systems, we present Delivery Based Ordering (DBO), a new approach that ensures fairness by instead correcting for differences in latency to the participants. We evaluate DBO both in our hardware test bed and in a public cloud deployment and demonstrate that it is feasible to achieve guaranteed fairness and sub-100 microsecond latency while operating at high transaction rates.
ISSN:2331-8422