Luxembourg-based crypto exchange Bitstamp will be receiving a new matching engine designed by an international provider of exchange and clearing technology, Cinnober, whose clientele is composed mainly of traditional stock and commodity markets.
Bitstamp Chief Technology Officer David Osojnik states that the new system is expected to boost the exchange’s ability to match orders, which is particularly crucial during times of high market activity just like December of last year’s crypto boom.
Osojnik clarifies that their order matching speed is expected to reach 1,250 times faster while throughput may rise by 400 times. He adds that an intensified throughput will make sure that the company will be able to meet any level of demand.
Osojnik continues that the heightened speed is slated to help Bitstamp create an institutional trading service. In addition, this will enable the crypto exchange to include more order types as well as trading pairs without sacrificing the quality of its performance while providing a new direct API endpoint.
Bitstamp states that the new matching tool will be integrated after several phases, with the first phase scheduled to take place in the first quarter of 2019. The integration’s completion is expected by the end of June.
In a press release, Bitstamp CEO Nejc Kodrič says that for his company, the new trading system represents another step towards establishing itself as a bridge between crypto and traditional finance, adding:
“Our matching engine will be on par with traditional exchanges in both speed and throughput.”
He further states:
“We chose Cinnober because of their proven track-record in worldwide financial marketplaces.”
Bitstamp is one of the first crypto exchanges to be granted by the EU with payment institution license in 2016.
Cinnober, which was founded in 1998, gained popularity for powering traditional exchanges through its software. These exchanges include Australian Securities Exchange (ASX), Brazil’s B3, Dubai Gold & Commodities Exchange (DGCX), Japan Exchange Group (JPX), the London Metal Exchange (LME), Johannesburg Stock Exchange (JSE), among others.
“By upgrading their trading technology to further improve performance and stability as interest from investors and regulators grow, they demonstrate their firm commitment to providing a safe and reliable marketplace.”
Meanwhile, Bitstamp, which was established in 2011, has already branched out in London, Luxembourg, Slovenia, and the United States. As previously reported by CoinWire, NXMH in October has acquired the majority ownership stake in Bitstamp. Belgium-based investment firm NXMH is owned by South Korean multinational company NXC.