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Case Study

L1 Market Data Engine

Real-time market data ingestion and distribution platform for low-latency trading applications.

L1 Market Data Engine

Overview

A real-time market data engine that consumes exchange feeds, computes trading metrics, and exposes normalized market information through WebSocket interfaces.

Architecture

Exchange WebSocket feeds are ingested and normalized into a common schema. Market metrics such as spread, mid-price, VWAP, and trade velocity are computed in real time and distributed through a FastAPI WebSocket layer.

L1 Market Data Engine architecture diagram

Tech Stack

PythonFastAPIWebSocketBinance APIDockerRich

System Design

The system separates ingestion, processing, analytics, and distribution into independent stages. A rolling in-memory buffer stores recent market events for metric computation and visualization.

Challenges

  • 01Synchronizing trade and quote streams arriving independently
  • 02Maintaining low-latency calculations without blocking ingestion
  • 03Designing a reusable schema for future multi-exchange support

Implementation

Implemented concurrent WebSocket consumers for trades and quotes, rolling VWAP calculations, spread tracking, mid-price computation, and real-time broadcasting to connected clients.

Results

Successfully processed live market streams while maintaining responsive downstream updates suitable for trading dashboards and future strategy development.

Lessons Learned

  • Market data quality is more important than raw throughput
  • Streaming systems require careful separation of ingestion and processing
  • Observability becomes critical as data rates increase