Engine Congestion

Engine Congestion occurs when the volume of incoming orders exceeds the capacity of the exchange matching engine to process them in real-time. This leads to increased latency, order rejection, or significant delays in trade confirmation.

During market crashes, congestion can prevent traders from exiting positions, exacerbating the risk of liquidation. It is a critical performance issue that can undermine market confidence and fairness.

Exchanges mitigate this by scaling infrastructure, improving algorithm efficiency, and implementing flow control measures. It is a key indicator of whether an exchange's technical capacity is sufficient to handle real-world market stress.

Effective management of engine congestion is a hallmark of a robust trading platform.