edumatcher 0.3.3

Educational multi-process trading system with order matching

EduMatcher

Learn how real trading systems work. Build it from first principles.

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EduMatcher is an educational trading system that teaches market microstructure, matching logic, and exchange architecture through runnable code.

Unlike toy examples, it is designed to be both understandable and fast.

Why EduMatcher?

• Real exchange mechanics: order books, auctions, clearing, and risk controls
• Multi-process architecture: gateway, engine, audit, clearing, stats, and tooling
• Performance-aware implementation: ~60,000 orders/second with microsecond latency
• Practical protocol design: ALF (ALmost Fix) command language for gateway order entry
• Strong engineering discipline: type hints, linting, and high test coverage

Key Features

• Complete lifecycle: order entry, matching, clearing, and audit trail
• Rich order support: MARKET, LIMIT, STOP, STOP_LIMIT, IOC/FOK, ICEBERG, combo, OCO
• Market mechanisms: opening/closing auctions and circuit breakers
• Config-driven behavior via engine_config.yaml which acts as reference data for EduMatcher
• Message-based process boundaries with strong observability
• Implement real risk controls such as prioce-collar, kill-switch, circuit-breaker, and mass-cancel

Key Limitations

• No spread-order books
• No implied (synthetic) orders
• No primary-secondary site failover
• No load balancing
• Limited replay for participants that lose the connection
• No index calculations

Performance

EduMatcher does not aim to match venues like NYSE or LSE, but it is still fast for a pure Python educational project.

Latency (engine-only, n=1,000 each)

Order type	min (µs)	median (µs)	P80 (µs)	P90 (µs)	max (µs)
Limit	8.1	8.5	9.6	10.0	18
Market	8.1	8.5	8.8	9.3	45

Throughput

Metric	Value
Max TPS	~60,000 orders/second
Order mix	20% Market, 30% aggressive Limit, 50% passive Limit

Performance note: price-collar and circuit-breaker checks run in the hot path for every match. They are required for realistic risk control and add measurable cost.

Explore the Code

Start with these key areas:

• src/edumatcher/engine/ — Core matching logic and order book
• src/edumatcher/gateway/ — Message handling and order validation
• src/edumatcher/clearing/ — Trade settlement and P&L calculation

Documentation

Full docs: EduMatcher Documentation

Additional references:

• How an Exchange Works. This is a generic document meant for SW developers with no previous financial experience. Reading this document will give the necessary background both in finance and the core workings of an exchange.
• ALF Protocol Appendix. ALF is the Gatewauy human protocol used to send in orders vi the ALF gateway. It is a drastically simplified FIX inspired protocol (ALF = ALmost Fix)
• Glossary. An extensiv glossary with all commonly used financial terms used in these documents.

Who It's For

• Computer science students learning systems design and concurrency
• Finance students learning market microstructure and trading mechanics
• Developers building exchange technology or trading systems
• Anyone curious about how modern markets actually work

Contributing

This is an educational project. If you find bugs, improve the documentation, or make other enhancements PRs are welcome!

Citation

If you use this tool in teaching or courses, please cite:

@software{edumatcher,
  title = {EduMatcher},
  author = {Johan Persson},
  year = {2026},
  url = {https://github.com/johan162/edumatcher},
  version = {0.3.3}
}

License

MIT License - see LICENSE.