Futures & Margin Derivatives Exchange

Launch your exchange

The Modulus Futures and Margin Exchange is a production-ready multi asset white label exchange solution for operators that need to launch, customize, and run a leveraged derivatives venue.

The platform enables the creation and management of custom futures contracts, perpetual contracts, configurable expiry dates, leverage multipliers, contract risk rules, funding intervals, margin controls, liquidation workflows, and exchange-level risk management. In some markets, perpetual contracts are also commonly referred to as perpetual futures.

The Modulus Futures and Margin Exchange combines a high performance matching engine, position tracking, caching, insurance fund or margin pool logic, auto-deleveraging controls, configurable collateral, advanced order types, REST API access, FIX connectivity, compliance tooling, market surveillance, KYC and AML integration, enterprise security, and full source code access.

The solution is built for rapid deployment, cost-effective operation, and high scalability, allowing exchange operators to launch leveraged products across commodities, currencies, real-world assets, and other supported instruments.

Modulus is an American financial technology company with nearly three decades of exchange and fintech engineering experience. Modulus has developed and patented trading technology and exchange solutions used by major institutions including Nasdaq, Bank of America, J.P. Morgan Chase, Goldman Sachs, and many others. Learn about our issued patents at modulusip.com

Maintain complete control

The Modulus Futures and Margin Exchange is designed for operators that require autonomy, control, and long-term ownership.

Licensing the Modulus Futures and Margin Exchange gives operators control of clients, user data, trades, revenue, and profits, without ongoing royalties, commissions, forced revenue sharing, or backend agreements with technology providers or liquidity providers.

Many white label exchange providers keep operators dependent on the vendor's backend, liquidity relationships, pricing structure, roadmap, feature set, and business model. Modulus takes a different approach.

The platform can be licensed with full source code access, commercial source-code licensing, and customization support. Source code access can improve company valuation, enable independent code audits, support internal security review, and provide the flexibility to customize the exchange, including the web app, backend services, admin tools, and front-end trading interfaces.

This structure supports business continuity by reducing reliance on unreliable white label providers and closed-source vendors.

The result is not a rented trading venue. It is a source-code-controlled futures and margin exchange foundation that the organization can adapt, extend, audit, operate, and defend.

Exchange technology for derivatives markets

A leveraged derivatives venue is not only an order book with leverage settings.

It is a coordinated system of matching, margin calculation, collateral management, position tracking, mark price calculation, index price composition, liquidation management, insurance fund logic, auto-deleveraging controls, funding intervals, market data, user management, account controls, liquidity, surveillance, KYC, AML, reporting, security, administration, regulatory controls, and operational support.

AI can describe the visible parts of a futures and margin exchange. That is not the same as building exchange infrastructure that can handle leveraged positions, fast markets, real liquidity, liquidation events, regulatory review, real attack vectors, and real market conditions.

The Modulus Futures and Margin Exchange combines production-tested exchange components, AI-accelerated development workflows, clean-title source code, and an engineering team that understands how real trading systems fail.

That is the Modulus blueprint applied to futures and margin exchange technology. Learn more about the Modulus blueprint here.

Margin and risk management

Margin and risk controls can be configured for the market structure of the exchange.

Traditional derivatives venues can use portfolio-based margin frameworks such as SPAN or SPAN 2 where applicable.

Modern leveraged derivatives venues can operate with real-time margining, maintenance margin thresholds, liquidation engines, insurance fund or margin pool logic, and auto-deleveraging controls designed to protect market integrity during extreme conditions.

This distinction matters.

SPAN and SPAN 2 are margin methodologies. They help calculate risk-based margin requirements for portfolios.

Liquidation engines, insurance funds, margin pools, and auto-deleveraging controls are risk-management and loss-allocation workflows used when margin is no longer sufficient.

The Modulus Futures and Margin Exchange supports both approaches, allowing the exchange to align its risk model with the products listed, the applicable regulatory framework, and the preferred market structure.

Full regulatory compliance support

The Modulus Futures and Margin Exchange is designed to support global regulatory requirements and jurisdiction-specific approval processes.

The exchange supports regulatory and privacy requirements depending on jurisdiction, configuration, asset class, legal structure, product design, and operating model.

Modulus can assist with regulatory planning, technical documentation, compliance workflows, and operational design. Exchange operators should also work with qualified legal counsel in the relevant jurisdiction before launching, listing products, enabling leverage, offering margin, supporting perpetual contracts, activating market-making functionality, or providing derivatives access.

For firms beginning the launch process, Modulus can provide a complimentary blueprint, no-obligation assessment, and exchange business plan to support planning, funding conversations, and regulatory preparation.

Modulus can also assist with materials and technical planning used in funding discussions and regulatory approval processes.

For legal formation, licensing, and jurisdictional support, refer to the Modulus legal services page.

Leveraged products and contract flexibility

The Modulus Futures and Margin Exchange supports the creation and management of custom futures contracts and perpetual contracts.

Exchange operators can configure contract specifications, expiry dates, leverage multipliers, funding intervals, margin requirements, maintenance margin rules, risk levels, collateral options, index price composition, mark price calculation, and liquidation parameters.

The platform can support vanilla futures, vanilla perpetual contracts, inverse futures, inverse perpetual contracts, cross margin, multi-currency collateral, and leverage above 100x per contract where permitted by law and supported by the operating model.

This flexibility allows firms to list an unlimited number of leveraged products across commodities, currencies, real-world assets, and additional supported instruments.

Index price and mark price controls

Leveraged venues require accurate and resilient pricing controls.

The Modulus Futures and Margin Exchange supports index price composition for contracts and mark price calculation designed to reduce exposure to manipulation-driven liquidation events.

Index price composition can draw from configured reference markets, data sources, and rules. Mark price calculation can be used to support fair liquidation decisions, reduce unnecessary liquidations, and help protect traders and the exchange during fast-moving markets.

These controls are critical for derivatives venues where leverage can amplify small pricing errors into material risk events.

Auto-deleveraging engine

The Modulus Futures and Margin Exchange includes an advanced auto-deleveraging engine for extreme risk scenarios.

When a position faces liquidation, the liquidation workflow attempts to close the position according to configured risk rules.

If a position cannot be liquidated through normal execution and the insurance fund or margin pool cannot absorb the remaining loss, the auto-deleveraging engine can reduce opposing positions based on configured priority rules, including profit and leverage priority.

Positions can be closed out according to configured price and priority rules designed to support fairness, transparency, and exchange stability.

The auto-deleveraging engine is not a margin calculation method. It is a risk-management backstop used when margin, liquidation workflows, and insurance fund or margin pool logic are not sufficient to resolve a stressed position.

Insurance fund and margin pool logic

The Modulus Futures and Margin Exchange can include insurance fund or margin pool logic designed to reduce the need for automatic deleveraging.

The insurance fund can be used to address unfilled liquidation orders before the auto-deleveraging system is triggered. This provides an additional layer of protection for traders and the exchange.

Insurance fund balances can be accrued from liquidation events that are executed at prices more favorable than the bankruptcy price for a position.

This mechanism helps the exchange maintain a reserve that can absorb losses during market stress, support stability, and reduce the frequency of auto-deleveraging events.

Cross margin and portfolio offsets

The Modulus Futures and Margin Exchange supports Cross Margin and can be configured for spread-margin-style or portfolio-offset workflows where appropriate.

Cross Margin is designed to optimize capital utilization by evaluating available funds across a trader's account and allowing profits from winning positions to offset potential losses in other positions.

This can help prevent unnecessary liquidations and support more efficient management of hedged strategies.

Portfolio-offset and spread-margin-style workflows can be useful when traders maintain related or offsetting positions, since portfolio-level risk can provide a more accurate view of exposure than isolated position-level margin alone.

The platform can also support multiple risk levels to control initial margin and maintenance margin requirements.

High performance matching engine

The Modulus Futures and Margin Exchange includes an ultra-high performance matching engine designed for demanding leveraged markets.

The matching engine can scale to up to 84 million transactions per second within the matching engine, depending on configuration and deployment.

The platform combines matching, position tracking, caching, margin controls, and a highly scalable micro-service architecture designed for performance under load.

The matching engine, order types, market rules, collateral rules, risk parameters, funding logic, and liquidation workflows can be customized around the operating model of the exchange.

Quick and easy setup

The Modulus Futures and Margin Exchange is designed for fast time to market.

The solution can be deployed on-premises, in the cloud, in private cloud environments, or on bare metal infrastructure depending on operational requirements.

The platform can support Linux deployment, Docker containers, scalable infrastructure, monitoring, load balancing, failover, and a highly scalable micro-service architecture.

Beta testing and training can begin immediately after setup.

Modulus technicians can provide setup, maintenance, customization, training, and support services to help operators enter the market quickly and begin building liquidity and user adoption.

Modulus makes it faster, easier, and less painful to launch a futures and margin exchange while preserving the advanced features required to remain competitive.

No imposed limits

The Modulus Futures and Margin Exchange offers broad flexibility for exchange operators.

The platform can support an unlimited range of tradable products, including commodities, currencies, real-world assets, futures, perpetual contracts, and additional supported instruments.

The user interface, matching engine, margin model, contract rules, fee schedules, risk controls, admin tools, liquidity connections, and market structure can be customized.

Custom market-making bots can also be developed by qualified teams or third-party consultants where permitted by law and appropriate for the exchange model.

Modulus does not impose long-term contracts, recurring license fees, or revenue sharing schemes as a condition of operating the software.

Modulus powers growth

Most new exchanges fail to gain traction because trading volume and liquidity are difficult to establish.

A new exchange requires customers, but those customers require sufficient trading liquidity before they place trades.

The Modulus Futures and Margin Exchange can connect to supported liquidity providers, market-making operations, and other liquidity sources. The platform can also support configurable rebates and cash incentives to attract market makers where permitted by law.

Unlike many vendors, Modulus does not require revenue sharing to add liquidity connections to the exchange.

Local laws and regulations may restrict or govern market making, incentives, liquidity relationships, and related trading activity. Exchange operators should consult qualified legal counsel before launching or enabling these features.

Security and regulation

Security measures may include two-factor authentication, MFA support, anti-phishing protections, geofencing, VPN and Tor exit-node detection, database encryption, DDoS mitigation, network anomaly detection, trade anomaly detection, penetration testing, source code analysis, and administrative logging.

Cloudflare can be enabled to support DDoS mitigation, SSL and TLS encryption, edge security, and related security features.

The platform supports advanced geo-fencing that identifies IP geographies, ISPs, and organizational owners. The system can detect and reject Tor browser connections and VPN connections where strict regulatory compliance requires it.

The platform also includes built-in admin logging to track exchange employee actions including reading, writing, deleting, approvals, account changes, withdrawal processing, and configuration changes.

Custom administrator accounts can be created with specific permissions for compliance, operations, finance, support, and technical teams.

KYC and AML

The Modulus Futures and Margin Exchange supports Know Your Customer and Anti-Money Laundering workflows required by regulated exchange operations.

KYC verification can support identity checks, name verification, address verification, document verification, and related onboarding workflows.

AML workflows can include real-time risk scoring through machine learning and integration with third-party compliance providers.

Supported KYC and AML provider integrations may include Jumio, Trulioo, IdentityMind, Shufti Pro, SynapseFi, Cognito, 4Stop, ComplyAdvantage, IDology, Sum and Substance, manual KYC workflows, and other providers depending on project requirements and current availability.

Freshdesk customer support integration can also be added.

Market abuse detection and surveillance

The Modulus Futures and Margin Exchange can support AI-driven anti-market manipulation, anti-money laundering, and market abuse detection.

Using machine learning, the exchange can analyze pre-trade and post-trade data to identify suspicious activity including large trades, pass-through trades, wash trades, spoofing, layering, stuffing, hammering, momentum ignition, and money laundering patterns.

Administrators can freeze accounts as needed and generate Suspicious Activity Reports for regulators where supported by the configuration and applicable workflow.

This helps exchange operators move beyond basic compliance checklists and toward active market surveillance.

Customizable user interface

The Modulus Futures and Margin Exchange includes a pre-built, customizable exchange web app with a modern user interface designed to complement the Modulus Spot Exchange.

The user interface is designed to address shortcomings and UX flaws commonly found in existing exchange applications.

The UI can support multiple languages through globalization files, including right-to-left text.

Features may include MFA, GDPR support, professional charting, technical analysis tools, account workflows, order entry, portfolio screens, margin views, position management, risk displays, alerts, and administrative tools.

Full source code access gives development teams the ability to tailor the exchange to specific brand, workflow, regulatory, and market requirements.

The platform includes a developer API and support options for building trading bots, custom user interfaces, custom admin applications, and additional exchange workflows.

Advanced order types

The Modulus Futures and Margin Exchange supports advanced order types required by professional derivatives venues.

Supported order and execution features may include Post-Only orders, Reduce-Only orders, Hidden Orders, Close Only orders, Close-on-Trigger functionality, and order cost calculators.

Special stop order types can include triggers on Last Traded Price, Index Price, and Mark Price.

These features give exchanges more control over execution logic, trader workflows, liquidation behavior, and risk management.

Customization and support services

Modulus provides customization and support services to help operators tailor the exchange to exact specifications and keep the platform operational.

The Modulus team can assist with user interface changes, feature integration, backend architecture, performance optimization, market-data integration, liquidity integration, margin logic, contract configuration, risk controls, compliance workflows, admin tools, and exchange-specific business logic.

Customization services can cover every aspect of the exchange, from front-end design to backend architecture.

Support services can include technical documentation, training, best practices guidance, updates, security patches, performance optimizations, monitoring, maintenance, and operational assistance.

Optional 24/7 support, monitoring, updates, security patches, and performance optimization are available.

Global markets never sleep. Exchange infrastructure should be designed for continuous operation.

Modulus can provide support and maintenance options to help operators reduce downtime, respond to issues, and keep the exchange running at peak efficiency.

Continuous innovation and product updates

Modulus understands that exchange technology must adapt as markets, regulations, security threats, and user expectations evolve.

The Modulus Futures and Margin Exchange can include a full year of complimentary product updates depending on license terms.

Product updates may include new features, security patches, technical improvements, performance enhancements, and platform refinements designed to keep the exchange relevant and competitive.

Operators maintain discretion over which upgrades and features to implement.

After the initial maintenance period, firms may continue using the licensed software without any obligation to renew maintenance. Ongoing support and updates can be extended through an optional maintenance subscription.

If maintenance is not renewed, the licensed software can continue to be used. Maintenance can be renewed later if additional updates, security patches, or technical assistance are needed.

This provides autonomy, flexibility, and control over the long-term evolution of the exchange.

Industry recognition

Modulus technology has been recognized for performance and accuracy by industry publications and awards programs, including Benzinga Fintech Awards recognition for performance and accuracy.

The Modulus technical indicator library has also won awards from Futures magazine and Stocks and Commodities magazine. Learn more about Modulus here.

Trusted financial technology experience

Modulus has delivered trading technology, exchange solutions, financial software, and capital-markets infrastructure for major institutions and market participants around the world.

Clients and technology users have included Nasdaq, Bank of America, J.P. Morgan Chase, Goldman Sachs, HSBC, UBS, Citi, BNP Paribas, CME Group, NYSE-related market participants, brokerages, exchanges, funds, market makers, regulators, and market-data providers.

The Modulus Futures and Margin Exchange brings that record into a production-ready exchange platform that can be launched, customized, audited, and operated with ease.

Important legal notice

Derivatives trading on margin carries substantial risk for traders and exchange operators.

Exchange operators must have knowledge of derivatives, margin trading, liquidation mechanics, market making, and applicable legal requirements to use the Modulus Futures and Margin Exchange.

Market-making bots are not provided with the solution.

Third-party derivatives trading consultants, including Modulus Certified Consultants where available, may be able to assist new derivatives exchanges with the complexities of market making and operations.

Modulus provides software and technical services, not legal advice. Operators should consult qualified legal counsel and confirm compliance in every jurisdiction where the exchange will operate before launching or enabling any regulated feature.

Deliverables

The Modulus Futures and Margin Exchange can be delivered as a full exchange application, source-code engagement, or customized futures and margin exchange platform depending on project requirements and license terms.

Deliverables may include exchange web app, matching engine, market-data services, backend services, admin control panel, professional trading front end, margin engine, position tracking, caching, liquidation engine, insurance fund system, margin pool logic, auto-deleveraging controls, index price composition, mark price calculation, funding interval logic, advanced order types, FIX out server, REST API, socket streams, KYC provider integrations, AML provider integrations, geofencing, VPN and Tor detection, developer API, trading bot API, security controls, admin logging, surveillance tools, Proof of Solvency audit reporting, reporting tools, documentation, training materials, AI development files, and customization support.

The exact deliverables depend on the license, tradable products, regulatory requirements, jurisdiction, hosting model, liquidity model, margin model, risk model, and implementation plan.

Schedule a call

Schedule a discussion to review how the Modulus Futures and Margin Exchange can be configured for a futures exchange, margin exchange, commodities exchange, FX exchange, real-world asset exchange, or broader multi-asset derivatives venue.

Existing requirements, RFPs, AI-generated specifications, business plans, regulatory plans, and current exchange challenges can be used as the starting point.

Modulus can help turn those requirements into a production-ready futures and margin exchange the business can own.