QFEX operates as a Central Limit Order Book (“CLOB”) exchange, aggregating all buy and sell orders into a single transparent order book that displays the best available prices and quantities to all participants simultaneously. Orders are executed based on strict price-time priority rules, ensuring that the best-priced orders execute first, and among orders at the same price, those received earlier have priority (subject to a speed bump which is implemented to protect against latency arbitrage - see below). This architecture provides price transparency, guarantees fair execution, and promotes efficient price discovery by bringing all market participants together in a single venue.The exchange code is written primarily in Rust and runs on Amazon Web Services hosted in Tokyo. Both market data and order entry access is via GUI and API (websockets), with equal access on all terms for all clients.
QFEX implements a 100-millisecond speed bump on all limit orders to protect against latency arbitrage and create a level playing field for all participants. When a limit order is received, it is held in a queue before being sent to the order book. This delay applies uniformly regardless of the participant’s technological sophistication or network connectivity.The speed bump applies to all limit orders including new submissions and modifications, but not to any other request. This implementation reduces advantages gained through technological superiority alone and encourages broader market participation, typically leading to improved liquidity and more efficient price discovery. It is in line with standard industry practice to create a fair market place, and encourage the provision of liquidity.
