Kraken API Unlocked: ultra-low-latency buying and selling on Kraken, from cloud to colocation

TL;DR: 

• Each API dealer on Kraken routes to the identical spot and derivatives buying and selling engines. What differs is the path and the latency.
• Cloud connectivity is offered to each particular person and institutional merchants. Hosted colocation, additionally out there to each, is obtainable by way of a supplier subscription. Direct colocation, a cross-connect to Kraken’s infrastructure, is offered to institutional VIP purchasers solely and requires particular {qualifications}.
• For institutional merchants, devoted non-public community routes are additionally out there between main international hubs.

New to Kraken API Unlocked? Learn blogs 1-4 right here.

Each API dealer reaches some extent the place they ask the identical query: is my connection quick sufficient, or is latency costing me an edge?

For particular person merchants operating systematic methods, cloud connectivity is usually enough, and understanding why is as helpful as figuring out when that stops being true. For institutional merchants, high-frequency buying and selling corporations, market makers, and algorithmic desks, the reply is commonly that the hole between the place they’re and the place they might be is significant, and the distinction has a direct value.

Does latency really have an effect on your buying and selling technique on Kraken?

Quicker execution means much less market affect, fewer antagonistic fills, and extra management over when and the way your orders land. The query shouldn’t be whether or not latency issues. It does for each dealer. The true query is how a lot it issues to your particular technique, and whether or not lowering it could meaningfully change your outcomes.

For some methods, the reply is sure, decisively. Institutional merchants operating latency-sensitive execution, high-frequency buying and selling corporations and market makers (particularly), must replace and cancel orders quicker than different members can commerce in opposition to stale costs. The window between a market transfer and a stale order being hit is slim at aggressive venues.

For methods like development following, rebalancing, and systematic macro, the standard of your information, sign, and danger administration will decide outcomes greater than incremental good points in execution velocity.

The identical precept applies to particular person API merchants. In case your technique depends on reacting to market occasions rapidly, even at average frequency, then it’s price measuring your present latency and establishing a latency baseline. 

What connectivity choices does Kraken supply for low-latency buying and selling?

Cloud connectivity — particular person and institutional merchants
Join by way of public endpoints from an AWS cloud setting in London. IP whitelisting is offered for extra safety. For many particular person API merchants operating methods that aren’t latency-critical, that is enough.

Hosted colocation — particular person and institutional merchants
Kraken works with colocation suppliers whose infrastructure is on the identical campus as Kraken’s buying and selling infrastructure. Out there to each particular person and institutional merchants, together with market makers and high-frequency buying and selling corporations, by way of a subscription with a colocation supplier.

Devoted international community routes — institutional merchants
For institutional merchants, hedge funds, buying and selling corporations, and high-frequency buying and selling operations, devoted non-public community routes can be found between main international hubs. These are non-public, devoted connections slightly than shared web routes. Contact your Kraken Relationship Supervisor for particulars.

Direct colocation — institutional VIP purchasers solely
Direct colocation supplies a bodily cross-connect to Kraken’s buying and selling infrastructure. It’s designed for institutional merchants, high-frequency buying and selling corporations and market makers particularly,  who wish to retain management of their infrastructure and have already got a presence within the facility.

Entry requires institutional VIP consumer standing, a signed NDA, and current or deliberate infrastructure in Equinix London. To start the onboarding course of, contact your Kraken Relationship Supervisor.

Which API protocol must you use for low-latency buying and selling on Kraken?

Connectivity tier and API protocol alternative are associated, however they’re separate selections. Kraken gives three API protocols: REST, WebSocket, and FIX 4.4. 

REST API covers market information, account information, buying and selling, funding, and associated features throughout each Spot and Futures. It fits portfolio queries, periodic order placement, and account workflows. For real-time streaming or session-based execution, use WebSocket or FIX

WebSocket v2 is the overall beneficial protocol for many API merchants. It supplies real-time order entry, market information streaming, L3 ebook entry, and account updates over a single persistent connection. 

FIX 4.4 is constructed for institutional merchants, high-frequency buying and selling corporations, market makers, and algorithmic buying and selling desks that require deterministic message sequencing and session-based danger controls.

FIX makes use of a sticky routing mannequin the place every session is certain to a particular FIX Gateway occasion, and each message follows the identical path to the buying and selling engine, preserving message order. That is distinct from WebSocket, the place connections are load-balanced and two sequential messages could observe completely different paths to the buying and selling engine’s inbound queue. The API Unlocked episode on FIX 4.4 covers this intimately. 

How do you get colocation entry on Kraken?

• For cloud connectivity, particular person and institutional merchants can hook up with Kraken’s public endpoints.
• For hosted colocation,  out there to each particular person and institutional merchants,  go to the connectivity information to see out there suppliers and get began.
• For devoted international community routes, institutional merchants ought to contact their Kraken Relationship Supervisor.
• For direct colocation, institutional merchants ought to contact their Kraken Relationship Supervisor to start the onboarding course of. Entry requires institutional  VIP consumer standing, a signed NDA, and infrastructure in Equinix London.

FAQ

Does latency matter for API buying and selling on Kraken?
Quicker execution means much less market affect and extra management over how your orders land. How a lot it issues depends upon your technique. Institutional merchants operating latency-sensitive execution, high-frequency buying and selling corporations, market makers and arbitrage desks are most affected. For many particular person API merchants operating methods that aren’t latency-critical, cloud connectivity is mostly enough.

What connectivity choices does Kraken supply?
Cloud connectivity  by way of public endpoints , hosted colocation via colocation suppliers, devoted international community routes for institutional merchants and direct colocation for institutional VIP purchasers with particular necessities.

Do all API merchants hook up with the identical buying and selling engines on Kraken?
Sure, particular person and institutional merchants alike path to the identical spot and derivatives buying and selling engines. What differs is the trail to these engines, the ensuing latency, and the entry necessities for every tier. 

Who can entry colocation on Kraken?
Hosted colocation is offered to each particular person and institutional merchants, together with market makers and high-frequency buying and selling corporations, by way of a subscription with a colocation supplier. Go to the connectivity information to see out there choices. Direct colocation requires institutional VIP consumer standing, a signed NDA, and current or deliberate infrastructure in Equinix London, contact your Kraken Relationship Supervisor to start the method. 

What API protocol ought to I exploit for low-latency buying and selling on Kraken?
WebSocket v2 is the overall beneficial protocol for many  API merchants. For institutional merchants, high-frequency buying and selling corporations and market makers requiring deterministic message sequencing and session-based danger controls at colocation latency, FIX 4.4 is offered. Learn The API Unlocked episode on FIX 4.4 for extra info.

What connectivity choices can be found for institutional merchants connecting from different areas?
Devoted non-public community routes can be found for institutional merchants connecting between main international hubs. Contact your Kraken Relationship Supervisor for particulars.