Event-Driven Architecture vs Microservices Architecture

A software architecture pattern where trading systems respond to and process discrete events—price updates, order fills, market signals—asynchronously rather than polling for changes, enabling low-latency decision-making and flexible component communication.

A software architecture approach where trading systems are decomposed into small, independently deployable services—each handling specific functions like order execution, risk management, or position tracking—communicating through well-defined APIs rather than existing as single monolithic applications.