Hexagonal architecture in Fintech
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The document discusses hexagonal architecture in fintech, emphasizing its use for creating loosely coupled application components that enhance maintainability and flexibility. It details the architecture's components such as the application core, ports, and adapters, and their independence benefits, particularly in a multi-service environment. Additionally, it outlines the trading lifecycle and challenges in fintech applications, demonstrating how hexagonal architecture addresses these issues by allowing components to function both independently and in unity.
Hexagonal architecture in Fintech
- 1. Hexagonal Architecture in Fintech Presented By: Jasmine Kaur Software Consultant Knoldus Software Pte. Ltd.(Singapore)
- 2. About Knoldus Knoldus is a technology consulting firm with focus on modernizing the digital systems at the pace your business demands. DevOps Functional. Reactive. Cloud Native
- 3. Agenda Components of Hexagonal Architecture Advantages of Hexagonal Architecture Challenges in Fintech application Overview of trading life cycle About Hexagonal Architecture
- 4. Agenda Demo Overview of sample trading app How Hexagonal Architecture fix this challenge
- 5. About Hexagonal Architecture The hexagonal architecture, or ports and adapters architecture, is an architectural pattern used in software design. It aims at creating loosely coupled application components that can be easily connected to their software environment by means of ports and adapters. This makes components exchangeable at any level.
- 6. Components of Hexagonal Architecture ● Application Core: This is one of the important component of the architecture which handles the core business logic of the application. ● Ports and Interfaces: This is the middle layer component of this architecture which resides between application core and the adapters ● Adapters: This is the outermost layer of this architecture. The job of each adapter varies depending upon their need and utility.
- 7. Advantages of Hexagonal Architecture ● All the components under this architecture are completely independent. ● It is best used in multi-service oriented application i.e. where any application needs multiple service components to accommodate their business needs. ● Due its completely independent nature of this architecture, it is easy to maintain and develop.
- 8. Overview of trading life cycle In the financial market, “trade” means to buy and/or sell securities/financial products. To explain it further, a trade is the conversion of an order placed on the exchange which results in pay-in and pay-out of funds and securities. The trade ends with the settlement of the order placed. All the steps involved in a trade, from the point of order receipt (where relevant) and trade execution through to settlement of the trade, are commonly referred to as the ‘trade lifecycle’.
- 9. Overview of trading life cycle
- 10. Challenges in Fintech application ● The biggest requirement and challenge of a Fintech application is that each of the components of such a multi-service oriented application should work in isolation as well as perform in unity with other components to achieve the required functionality of the application so that the business logic remains intact even if any of the component goes down. ● Each component of our multi-service oriented application should be flexible enough to make changes from time to time. For example, if trade reporting service replace the existing database such as Cassandra with Elasticsearch, then there should not be any impact on any other component as well as the entire business logic.
- 11. How Hexagonal Architecture fix this challenge ? 1. The first problem was how to make a component truly independent of each other? 2. The second problem revolves around if we need to make any major infrastructure change like replacing existing database with another.
- 12. Overview of sample trading app 1. Matching Engine - It just accepts the trades from multiple input sources like REST and FIX and then performs matching based upon the criterias. 2. Trade Booking service - It accepts the Matched trade and transforms it into a transaction report request and sends to TxReporting service. 3. TxReporting service - Only responsible to report the transactions and persist into the DB.
- 13. Overview of sample trading app
- 14. DEMO
- 16. FIX Message for NewOrderSingle(MsgType = 35) Tag Number Field Name Examples(if exists) 11 ClOrdID 54 Side Buy/Sell 44 Price 38 OrderQty 460 Product Commodity, Corporate 167 SecurityType Future, Swaps
- 17. FIX Message for Execution Report (MsgType = 8) Tag Number Field Name Examples(if exists) 37 OrderID 17 ExecID 150 ExecType New, Rejected, Expired 39 OrdStatus Accepted for bidding, Rejected, Expired 54 Side Buy, Sell 151 LeavesQty 14 CumQty 6 AvgPx
- 18. References: ● https://en.wikipedia.org/wiki/Hexagonal_architecture_(software) ● https://blog.knoldus.com/introduction-to-the-trade-life-cycle/ ● https://blog.knoldus.com/hexagonal-architecture/