Trade matching engine
A trade matching engine is the core software component of an electronic exchange. It matches up bids and offers to complete trades. Matching engines use one or several algorithms to allocate trades among competing bids and offers at the same price.
The most commonly used algorithm is time price priority, meaning those bids and offers entered into the match engine first have priority over similar bids or offers that were susquently entered into the system.
The three largest futures match engines by contract volume are the CME Group's Globex platform, NYSE Euronext's Liffe Connect and Eurex's 10.0 system release. The Patsystems Trade Matching Engine is currently used by the Tokyo Grain Exchange, Chubu Commodity Exchange, Kansai Commodities Exchange, Kanmon Commodity Exchange, the Agricultural Futures Exchange of Thailand (AFET), and National Commodity Exchange Limited (NCEL) in Pakistan.