Wire protocol

In the context of financial trading, wire protocols define how data and orders are structured, transmitted, and received between different systems, particularly between trading applications and matching engines. They ensure that messages are correctly formatted and that the systems can effectively communicate. This term encompasses various communication protocols beyond just the physical and data link layers, which the term "wire" might suggest.

Examples of wire protocols include:

• Application-level protocols: Protocols such as ITCH and OUCH outline the message structure for market data dissemination and order entry. These protocols are essential for ensuring that trading participants can efficiently send and receive information about orders and market conditions.
• Session-level protocols: Protocols like MoldUDP64 facilitate the reliable transmission of data packets over networks, often enhancing performance and reducing latency in trading environments.