Simple Binary Encoding (SBE) is a FIX Trading Community standard designed for fast, compact, low-latency binary encoding of market data and trading messages. It is optimized for predictable memory layout, efficient field access, and minimal encoding/decoding overhead, making it well suited for exchange market data, order entry, and high-performance internal distribution layers.
B2BITS SBE Market Data Solutions are built for firms that need production-grade connectivity to SBE-based exchange feeds and want more than a low-level codec. Rather than exposing clients to raw schema handling, packet sequencing, recovery edge cases, and venue-specific semantics, B2BITS delivers a handler layer that helps applications consume normalized market events with low latency, robust recovery, and operational resilience. This approach is already reflected in B2BITS’ CME MDP Handler and B3 SBE Market Data Handler offerings. (links)
SBE is not limited to market data. Leading exchanges have adopted SBE as a unified encoding model across both market data and order entry workflows.
At CME Group, SBE is used not only for market data (MDP 3.0), but also for the iLink 3 order entry protocol, providing a consistent, low-latency binary encoding across the full trading lifecycle.
Similarly, B3 has introduced SBE-based binary protocols for both market data (Binary UMDF) and order entry APIs, as part of its modernization of the PUMA trading platform.
This convergence reflects a broader industry trend toward standardized, high-performance binary protocols that simplify architecture and improve end-to-end latency.
SBE has emerged as a natural fit for modern exchange protocols because it combines binary efficiency with schema-driven evolution.
B2BITS applies its experience in exchange connectivity, feed handling, and low-latency software design to deliver SBE solutions that support:
- high-throughput market data ingestion
- schema-driven message decoding
- recovery-aware processing
- book building and incremental update handling
- integration into client applications through practical APIs (Link)
Features
| Feature | Description |
|---|---|
| High-performance SBE decoding |
B2BITS SBE solutions are designed for ultra-low-latency binary feed consumption, leveraging the inherent strengths of SBE: fixed-layout fields, compact binary representation, and schema-driven parsing. SBE is specifically intended for low-latency use cases by FIX Trading Community, and B2BITS positions its handlers for performance-sensitive trading environments. |
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Schema-driven decoder model |
B2BITS SBE handlers use predefined SBE templates to decode messages efficiently and accurately. This model reduces protocol-specific hardcoding and helps support protocol evolution through schema/template updates rather than wholesale decoder redesign. B2BITS already highlights template-loading behavior in its CME MDP offering and schema-driven decoding in its B3 SBE offering. |
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Bandwidth-efficient binary market data |
Compared with text-heavy protocols and older paradigms, SBE is designed to deliver compact binary payloads with low encoding/decoding overhead. B3 explicitly states that Binary UMDF with SBE offers lower latency than FIX/FAST for high-performance trading systems. |
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Unified encoding across market data and order entry |
One of the key advantages of SBE is its ability to serve as a common encoding layer across multiple parts of the trading stack.
This unified approach enables:
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Architecture
B2BITS SBE solutions follow a layered model aligned with real-world trading system architecture:
- Same encoding layer can be reused across:
- market data
- order entry
- Transport and session layers remain independent
This approach allows B2BITS to:
- support evolving exchange protocols without redesign
- maintain consistent performance characteristics
- reduce client integration complexity
- accelerate onboarding of new SBE-based venues
Implementation Details
The B2BITS SBE codec is implemented as a highly optimized, template-driven framework for assembling and parsing messages in SBE format.
The codec components are delivered as part of the relevant B2BITS handlers and are tightly integrated with venue-specific protocol implementations, ensuring both performance and operational robustness.
Key characteristics
- Template-based architecture
Efficient code generation from SBE schemas enables fast and predictable message processing - High-performance message assembly and parsing
Designed for low-latency environments such as market data ingestion and order entry. Uses “Zero-copy” approach - reuse of pre-allocated objects/buffers and direct field access - Schema-driven regeneration
Codec can be regenerated when SBE templates change, allowing rapid adaptation to exchange updates - Seamless handler integration
Provided as part of full market data and order entry handlers rather than as a standalone component
APIs
B2BITS positions its market data and order entry handlers around practical application integration, not just protocol decoding.
Flexible integration levels
Following the pattern presented in the CME MDP Handler page, B2BITS can describe the API model across several layers of abstraction:
- Order Book API for clients consuming maintained book state
- Message API for clients consuming sequenced and synchronized market data messages
- Raw Data API for clients that need access close to the packet layer
- Connection/API extension points for advanced integration scenarios
Typical application use cases
- low-latency market data gateways
- algorithmic trading systems
- smart order routers
- internal market data normalization layers
- consolidated book builders
- real-time monitoring and analytics platforms
Supported / relevant B2BITS venue implementations
- CME MDP 3.0 — SBE-based market data handling with recovery, feed arbitration, and flexible APIs.
- Order Entry: iLink 3 - SBE over FIXP
- B3 Binary UMDF — SBE/FIXP-based market data for B3 PUMA with UDP multicast connectivity, recovery support, full-depth order book handling, and pre-certified integration.
- Order Entry: Binary over FIXP
Supported Platforms
| Operating System | Description |
|---|---|
| Linux |
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Windows |
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Languages / implementation options |
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Talk to B2BITS about production-grade SBE connectivity for B3, CME, and other performance-sensitive market data environments.
sales@b2bits.com