Exchange Simulator for tastyworks Trading Platform
Case study

Exchange Simulator for tastyworks Trading Platform

About the Client

tastyworks is a US brokerage firm, which was founded by the same anti-Wall Street team that created thinkorswim in 1999 (now operated by TD Ameritrade) and tastytrade in 2011. 

tastyworks platform is designed for the active trader who is primarily interested in trading derivatives. With extremely fast and stable data feeds, the platform supports the trading of stocks, options, futures, and futures options. tastyworks is considered safe as it is regulated by a top-tier regulator, the US FINRA.

Business Challenge

After tastyworks brokerage was launched in 2017, and their trading platform started to gain popularity among self-directed investors. tastyworks wanted to continue riding the wave and decided to enhance the educating and onboarding with the simulated trading mode, where their customers would be able to preview trading platform features or test their trading strategies without risking real money or completing full brokerage onboarding paperwork. 

As they wanted to concentrate on their core business functions, they decided to outsource the development of the components required for simulated trading mode.

They selected Devexperts because they were aware of Devexperts’ expertise in options trading software and the flexibility of their products due to an extensive set of APIs.

Solution

To solve this task, Devexperts used a part of the dxTrade multi-asset solution. We took our FIX-based order routing and execution component providing exchange execution simulation, and prepared it for the integration with the tastyworks options trading platform. All parts of dxTrade are detachable and can be delivered to the client as a stand-alone component. tastyworks only needed to install and integrate it into their environment.  This autoexecution module was connected with the tastyworks’ market data provider (dxFeed) and OMS via the FIX protocol. It supports issue, replace, or cancel of Market, Limit, and Stop orders for Stocks, ETFs, warrants. It conforms to all the technical requirements such as the throughput or 100 orders per second, and the latency of 100 milliseconds.

Results

tastyworks received the necessary Exchange simulator component within several days. This backend component allowed them to attract more clients and make them loyal during the testing period. It also let them enter into business with educational trading companies.