Appendix B Technology Terminology
| Application Programming Interface (API) | A set of functions, procedures, methods, classes or protocols that is used by a software program to request another software to perform a task. |
| ECN (Electronic communication network) | A computer system that facilitates trading of financial products electronically. |
| Exchange Gateway | A bridge between trading screens or automated trading system and the exchange matching engine. Orders routed from any trading terminal first goes through the exchange gateway where they either gets accepted or rejected based on the order structure. |
| Execution Management system (EMS) | A software application that allows financial community access to multiple trading venues similar to front-end trading systems. EMS generally offers trading community access to exchanges, crossing networks, and brokers’ trading network. |
| Financial Information eXchange (FIX) | The FIX Protocol is an open messaging specification used by the financial industry to standardize electronic communication in the financial markets. |
| FIXML | FIXML is FIX implemented using XML, a structured validated eXtensible Markup Language that is widely used by the computer industry. |
| Graphical User Interface (GUI) | A computer screen which allows user to interact with computer program. Front-end trading screen serves as the GUI for traders to trade across exchanges electronically. |
| Hosting facility | A data center that operates and maintains computers and software systems for other companies for a fee. |
| Independent Software Vendor (ISV) | Usually small software company that builds products that depend on software platforms built by larger software companies. |
| Market data | Refers to the bid and ask prices of the financial instrument as well as additional trade related information such as order quantity, last traded price, trade time, and trade volume. |
| Matching engine | A system at the exchange that pairs all the buy and sell orders that are at the same price based on the matching rules defined by the exchanges. |
| Order Management System (OMS) | A computer software system used by the financial community to manage order flow between trading systems and exchanges. OMS validates and routes orders received from trading systems to the appropriate trading venue. |
| Straight through processing (STP) | STP enables the entire trade process and payment transactions to be conducted electronically without any manual intervention by a person. |
| SWIFT | Society of Worldwide Interbank Financial Telecommunication (SWIFT) is a messaging standard for financial industry. SWIFT messages are used primarily for back-end processing such as transfer of funds between two banks. |
| TCP/IP | A low level protocol for transferring data between computers. |
| Trading screen | A popular term used to describe the computer system used by the traders to conduct trading activities. |
| Time Weighted Average Price (TWAP) | A trading strategy to achieve a specified average price for contracts or shares over a specified time. |
| Volume Weighted Average Price (VWAP) | A trading strategy toVolume-Weighted Average Price (VWAP) is the ratio of the value traded to total volume traded over a particular time horizon (usually one day). It is a measure of the average price a stock traded at over the trading horizon. |
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