Building Smart Trading API for India’s Leading Share Broker with AWS SaaS Competency and Best Practices
Delivering a high-performance, scalable, trustable and reliable API using SaaS enablement services on AWS
The transition to cloud-based applications has revolutionized software distribution, with businesses increasingly adopting Software-as-a-Service solutions to enhance customer experiences. This blog through a use-case explores how one may leverage AWS SaaS competencies to empower share broking firms with a high-performance, scalable, and reliable Smart Trading API while adhering to SaaS best practices.
The Evolution of Algorithmic Trading
The financial landscape has witnessed significant transformations, especially in the realm of algorithmic trading. Since the introduction of Direct Market Access (DMA) by the Securities and Exchange Board of India (SEBI) in 2008, algorithmic trading has gained substantial traction. Global institutional giants like Morgan Stanley, UBS, JP Morgan, Merrill Lynch, and DSP quickly embraced this technology, and today, algorithmic trading commands a significant share of the market.
High-Frequency Trading (HFT) epitomizes the rapid evolution of trading, executing transactions 1000 times faster than human traders. While HFT and algorithmic trading offer unparalleled efficiency, they demand extensive coding efforts.
Simplifying Algorithmic Trading with AWS SaaS Competency
Applied Cloud Computing (ACC) streamlined the complexities of algorithmic trading by leveraging AWS SaaS competencies. By harnessing the power of SaaS on AWS Cloud, the development and deployment time was significantly reduced. This enabled our client to execute algorithmic and automated trading with just a few lines of code.
Enabling SaaS Applications for Smart Trading APIs
The Smart Trading APIs constitute a highly advanced suite of application programming interfaces (APIs) that serve as the backbone of a sophisticated trading execution engine. From a technical standpoint, these APIs are meticulously designed to cater to the intricate needs of traders and developers, offering a multifaceted array of critical functionalities.
Let’s delve into the technical intricacies of these key features:
Real-time Market Data Streaming: At its core, the Smart Trading APIs enable real-time market data streaming, a fundamental capability for traders seeking up-to-the-millisecond insights into financial markets. This feature involves complex data processing and transmission protocols that ensure the timely delivery of market data to trading applications. The technical architecture supporting this functionality relies on data feeds, messaging protocols, and low-latency infrastructure to guarantee that traders receive the latest market information in real time.
Historical Data Retrieval for Backtesting: The ability to retrieve historical data for backtesting is a critical feature in algorithmic trading. From a technical perspective, this involves accessing and processing vast historical datasets, often spanning years or even decades of market data. The Smart Trading APIs employ data storage and retrieval mechanisms that enable developers to seamlessly access and analyze historical data to refine trading algorithms and strategies.
User Portfolio Management: User portfolio management, a core component of trading applications, is technically intricate. It entails tracking and updating a user’s portfolio in real time, managing positions, calculating portfolio values, and ensuring synchronization with market data. The Smart Trading APIs provide the necessary endpoints and data structures to handle these complexities effectively, enabling developers to create user-friendly and technically robust portfolio management features.
Comprehensive and Structured JSON Format: The technical underpinning of the Smart Trading APIs relies heavily on data serialization and exchange formats. JSON (JavaScript Object Notation) is a structured and lightweight format used for data interchange. The APIs deliver data in well-defined JSON structures, ensuring that trading applications can seamlessly parse and process the information. This structured format enhances interoperability and simplifies data integration into a wide range of programming languages and platforms.
SmartAPI Libraries: The availability of SmartAPI Libraries in multiple programming languages, including Python, Java, NodeJS, R, Go, C#/.Net, and PHP, is a testament to the technical versatility of the Smart Trading APIs. Each library is technically optimized for its respective language, facilitating ease of integration and code development. These libraries abstract the intricacies of API interactions, allowing developers to focus on implementing trading logic rather than dealing with low-level technical details.
Easy Attainment of Brokerage Licenses: The process of attaining brokerage licenses involves intricate legal and regulatory compliance requirements. The Smart Trading APIs streamline this process by offering technical tools and interfaces that guide users through the necessary steps and documentation. The technical components here include document management, identity verification, and compliance checks to ensure a seamless and legally compliant path to brokerage license acquisition.
Smart Trading APIs represent a sophisticated SaaS-oriented solution, designed with a deep understanding of the technical complexities inherent in the world of trading. These APIs empower developers with real-time market data, historical data retrieval, portfolio management, structured data formats, language-specific libraries, and streamlined brokerage license acquisition — all critical elements in building technically advanced and competitive trading platforms. This technical depth underscores the transformative role of the Smart Trading APIs in modern trading ecosystems.
And the best part? This combined comprehensive package is entirely free of cost!
Unlocking the Potential of Open Banking with AWS SaaS
The success of project can be largely attributed to the seamless integration of various AWS services, which have been strategically leveraged to provide a robust and technically sophisticated Software-as-a-Service (SaaS) solution. The AWS ecosystem deliberately offers a range of powerful tools and features, which played a pivotal role in delivering a high-performance trading platform.
AWS API Gateway stands at the forefront of this integration, serving as a flexible and self-service API facade hosted in the cloud. This key component provides a multitude of features crucial for the efficient operation of the trading platform. These include advanced logging, efficient caching mechanisms, request throttling to manage traffic, burst capabilities to handle spikes in demand, and comprehensive monitoring to ensure optimal performance and availability. From a technical standpoint, AWS API Gateway facilitates the seamless interaction between traders and the trading platforms, acting as a gateway that manages and orchestrates API requests whenever requested.
Simultaneously, AWS Lambda, IAM (Identity and Access Management) and various other AWS services have been meticulously incorporated into the architecture to ensure the highest levels of security and scalability. AWS Lambda functions enable the execution of code in response to various events, ensuring that critical trading operations are carried out swiftly and efficiently. IAM governs the precise permissions and access control, safeguarding sensitive financial data and ensuring that only authorized individuals can interact with the system. This combination of AWS services establishes a robust technical foundation that underpins the security, scalability, and reliability of the Smart Trading API.
Empowering traders is at the core of the Smart Trading API, and this technical marvel offers a myriad of capabilities to achieve required objective:
Direct Buying and Selling: From a technical perspective, the Smart Trading API enables customers to swiftly execute share transactions, even in the midst of a conversation with a friend. This is made possible by the real-time interaction between the trader’s request and the underlying AWS services, ensuring rapid execution and seamless order processing.
Investing in Baskets: Complex algorithmic trading involving multiple stocks and securities is streamlined to a matter of seconds through the Smart Trading API. Behind the scenes, advanced algorithms and AWS services collaborate to swiftly execute intricate trading strategies, providing traders with an unprecedented level of efficiency and responsiveness.
Real-Time Stock Advisories: The technical sophistication of the Smart Trading API extends to real-time advisory services. Industry professionals and experts contribute to the platform’s database, which is accessed in real-time to provide traders with expert advice and up-to-the-minute recommendations. This entails a dynamic and highly responsive technical infrastructure that continually analyses market conditions and expert opinions, delivering timely and informed decision-making support.
Technical prowess of the Smart Trading API, underpinned by the comprehensive suite of AWS services, revolutionizes trading operations. This SaaS-oriented solution empowers traders with real-time capabilities, efficient transaction execution, and expert guidance, all facilitated through a technically advanced ecosystem that ensures security, scalability, and high performance. This integration of AWS services exemplifies how technology can empower and enhance trading in the modern financial landscape.
SaaS Best Practices empowering the Future of Trading
It is crucial to emphasize how SaaS best practices pose potential into the solutions developed: -
Multitenancy:
Multitenancy is a concept in cloud computing where a single SaaS application or system serves multiple tenants (customers or users) while keeping their data and configurations isolated from each other. In the context of the trading API, here’s how multitenancy can further be integrated:
Data Isolation:
Tenants’ trading data, including their portfolios, transaction history, and preferences, should be stored in isolated data structures or databases. AWS offers services like Amazon RDS (Relational Database Service) and Amazon DynamoDB that can be used to manage tenant-specific data. RDS creates separate database instances or schemas for each tenant. It applies database-level security groups and IAM authentication/authorization to control access to databases.
SAAS solution Enable encryption for data at rest using services like AWS Key Management Service — KMS and data in transit (SSL/TLS). It Encrypt data separately for each tenant, ensuring that each tenant’s data is isolated. It uses AWS KMS to create and manage tenant-specific encryption keys, ensuring data keys are isolated. Solution uses S3 bucket policies to control access to S3 buckets. It ensures that each tenant has their own S3 bucket and applies appropriate access controls. The Automatic process of tenant provisioning and de-provisioning reduces the risk of misconfigurations.
Security and Access Controls:
Robust access control measures, such as AWS Identity and Access Management (IAM), should be implemented to ensure that each tenant can only access their own data and resources. This prevents cross-tenant access and protects tenant resources from unauthorized access. The SAAS application uses Role-Based Access Control (RBAC) to define roles and permissions based on the specific responsibilities of users within each tenant. It also uses AWS API Gateway to manage and secure APIs. Implement request validation and access controls at the API Gateway level. The SAAS application implements tenant-Specific Security Groups and Policies which Customizes the security groups and policies for each tenant to ensure they have their own dedicated security controls. Along with application also uses AWS CloudTrail to log all API calls and actions taken by tenant and services within AWS environment. It Uses Amazon CloudWatch Logs for centralized log management and monitoring. Regularly review logs for any unauthorized access attempts or suspicious activity.
Smart Trading API developed with AWS SaaS competencies is revolutionizing the trading landscape in India. By reducing idle time, eliminating emotional barriers, and offering smart algorithmic trading, this innovation paves the way for the future of trading in the Indian market, all while adhering to essential SaaS best practices for scalability, security, and performance.
About ACC
Applied Cloud Computing (ACC) is a top-tier AWS consulting firm. ACC stands as a leading AWS consulting firm with a distinct focus on SaaS-oriented cloud solutions. ACC is committed to expediting the entire spectrum of cloud adoption, offering an array of exemplary implementation services, software offerings, and cutting-edge processes tailored specifically for SaaS environments. In essence, ACC plays a pivotal role in advancing end-to-end cloud adoption, particularly within the realm of Software-as-a-Service (SaaS). At the core of ACC’s value proposition is a robust and all-encompassing cloud adoption framework, meticulously designed to cater to the unique needs of SaaS-driven transformations. This framework serves as a structured blueprint, guiding clients through the intricate process of cloud adoption.
ACC’s SaaS-oriented approach ensures that clients harness the full potential of cloud technology to attain their business objectives swiftly and effectively. One of ACC’s distinguishing features is its unwavering commitment to software development in the context of SaaS solutions. The dedicated software development capabilities within ACC empower clients to achieve tangible and rapid business outcomes. Whether clients are at the inception stage of their cloud transformation, ACC’s software development expertise becomes a driving force, enabling clients to accelerate their journey toward SaaS-based cloud adoption. ACC distinguishes itself as a preeminent AWS consulting firm that specializes in SaaS-centric cloud solutions. ACC is well-equipped with the best-in-class implementation services, software solutions, and SaaS-oriented processes, all geared toward expediting end-to-end cloud adoption. Through its comprehensive cloud adoption framework and dedicated software development capabilities, ACC empowers clients to realize their business objectives with speed and precision, regardless of their current stage in the cloud transformation journey.
