System and method for simulating an electronic trading environment

A method for simulating an electronic trading environment, comprising:

• retrieving stored market information corresponding to a tradeable object at a processor associated with a computing device, the stored market information corresponding to a next state of market data recorded from a live market for trading a tradeable object at an electronic exchange;
• updating a market order book, at the processor, to reflect the retrieved market information;
• receiving, at the processor, order information and fill information from a simulated electronic exchange;
• updating a simulated order book, at the processor, based on the received order information and the fill information to reflect the current state of the simulated market;
• comparing the updated market order book with the updated simulated order book at the processor;
• generating, using the processor, at least one trade order to equalize the updated simulated market order book with the updated market order book to reflect the next state of market data in the retrieved market information;
• and
• submitting, using the processor, to the simulated electronic exchange the at least one trade order generated based on the comparison.

A computer readable medium having code stored thereon which when executed by a processor performs a method for simulating an electronic trading environment the method comprising:

• processing market information of a live market corresponding to a tradeable object being traded at an electronic exchange;
• retrieving the stored market information corresponding to the tradeable object, the retrieved market information corresponding to a next state of market data recorded from the live market at the electronic exchange;
• maintaining a market order book for the tradeable object, the market order book being updated to reflect the retrieved market information;
• maintaining a simulated order book that is updated based on order information and fill information being received from a simulated electronic exchange;
• and
• in response to the retrieval of the market information, comparing the updated market order book with the simulated order book, and generating at least one trade order to equalize the simulated order book with the updated market order book to reflect the next state of market data in the retrieved market information, and further sending the at least one trade order to the simulated electronic exchange.