Architecture of a Hybrid In-Memory and Cold Storage for Historical Financial Data
Andrii Humeniuk , Master Degree in Software Engineering Lead Software Engineer, DASTA Incorporated (“dub”) New York, USA,Abstract
This paper introduces a novel hybrid storage architecture (HyFDS), designed by the author to address the dual challenge of ultra-low latency trading workloads and cost-efficient archival storage in financial markets. Unlike prior works that optimize individual components, HyFDS integrates Apache Kafka, In-Memory Data Grids, lock-free patterns, and Apache Iceberg into a unified framework, validated against the requirements of high-frequency trading. This work proposes a conceptual model of a hybrid data storage architecture (HyFDS) that addresses this problem through the synthesis of heterogeneous technological approaches. The architecture is based on an event-driven model built on Apache Kafka, which serves as a unified bus for all system events. The “hot” tier, implemented on an In-Memory Data Grid (IMDG) and optimized through the LMAX Disruptor pattern and lock-free data structures, enables transaction processing with sub-millisecond latency. The “cold” tier, based on object storage with the Apache Iceberg tabular format, ensures scalable and cost-effective storage. The study analyzes data migration mechanisms, transactional consistency strategies (2PC, Saga), and disaster recovery plans, forming an integrated framework for designing next-generation financial systems.
Keywords
hybrid storage, in-memory, cold storage, event-driven architecture, Apache Kafka
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