PITCH Protocol (Examples)
PITCH (Private Internet Trading Channel) is a binary market data protocol designed for high-performance market data distribution. It provides real-time market data through a standardized format optimized for low latency and high throughput processing.
Understanding PITCH protocol
PITCH is a specialized binary protocol developed for distributing market data with minimal latency. The protocol is most notably used by Cboe Global Markets (formerly BATS) for their equities and options markets. As a binary format, it offers significant advantages over text-based protocols in terms of processing efficiency and network bandwidth utilization.
Key characteristics
Binary encoding
PITCH uses a compact binary encoding scheme that minimizes message size while maintaining all essential market data information. This approach reduces:
- Network bandwidth consumption
- Processing overhead
- Wire-to-wire latency
Message standardization
The protocol defines standard message types for common market events:
- Order additions and cancellations
- Trade executions
- Market by Order updates
- Administrative messages
Market data distribution
PITCH supports multiple market data distribution models:
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Provides a complete snapshot of the current market state, including:
- Active orders
- Market depth
- Trading status
Incremental feeds
Delivers real-time updates as they occur:
- Order modifications
- Trade executions
- Quote dissemination
PITCH's efficient binary encoding and standardized message format make it particularly suitable for high-frequency trading applications where minimal latency is critical.
Next generation time-series database
QuestDB is an open-source time-series database optimized for market and heavy industry data. Built from scratch in Java and C++, it offers high-throughput ingestion and fast SQL queries with time-series extensions.
Performance considerations
Latency optimization
PITCH's design prioritizes minimal processing overhead:
- Fixed-length fields where possible
- Optimized field ordering
- Minimal protocol overhead
Throughput handling
The protocol efficiently manages high message volumes through:
- Compact message formats
- Efficient sequence numbering
- Built-in recovery mechanisms
Market applications
High-frequency trading
PITCH is extensively used in algorithmic trading systems where speed is crucial:
- Real-time order book updates
- Trade execution confirmation
- Market state monitoring
Market data analysis
The protocol supports sophisticated market analysis:
- Price discovery
- Liquidity assessment
- Market microstructure research
Recovery and reliability
Gap detection
PITCH implements sequence numbering to ensure:
- Message ordering integrity
- Gap detection
- Recovery point identification
Recovery process
The protocol provides mechanisms for:
- Requesting missed messages
- Synchronizing with current market state
- Maintaining data consistency
Integration considerations
Feed handler development
When implementing PITCH feed handlers, consider:
- Binary parsing efficiency
- Message validation
- Error handling
- Recovery procedures
System architecture
PITCH integration requires attention to:
- Network infrastructure
- Processing capacity
- Latency monitoring
- Redundancy requirements
Best practices
Performance optimization
- Implement efficient binary parsing
- Minimize memory allocation
- Optimize network handling
- Use appropriate hardware acceleration
Reliability measures
- Monitor sequence gaps
- Implement proper recovery procedures
- Maintain redundant connections
- Validate message integrity