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Fanatics·Software Engineer·Onsite - System Design / Architecture·Senior

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Jun 2026

Summary

System design round at Fanatics for a software engineer role. The whole thing was basically one massive question about building a Robinhood-style trading platform, and they really did mean the whole thing, from KYC onboarding all the way to options extensibility.

Questions Asked (6)

Q1

Design an online retail stock trading platform similar to Robinhood. Walk through the full system: user onboarding with identity verification and funding via bank transfer, real-time balances, market data ingestion and streaming quotes, order lifecycle including validation, risk checks, and idempotency, routing to exchanges or market makers, post-trade clearing, portfolio and positions with cost basis and P&L, and how you'd handle corporate actions.

System DesignData ModelingAPI & Integrations
Author's notes

This is a monster of a question.

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AI HintsAI Generated

Suggested Approach

Start by clarifying functional and non-functional requirements, then outline a high-level architecture covering the main components: user onboarding, market data, order management, and portfolio services. Dive into critical flows like order placement with idempotency and risk checks, and discuss data models and trade-offs for scalability and consistency.

Pro tip: Emphasize idempotency and exactly-once processing in order placement and clearing, as these are crucial for financial systems to avoid duplicate trades and ensure data integrity. Also, discuss how you'd handle market data bursts and ensure low-latency streaming.

1. Clarify Requirements and Scope

Ask about expected user scale, latency requirements, regulatory constraints, and supported asset types. Define functional requirements like real-time quotes, order types, and portfolio tracking.

2. High-Level Architecture

Sketch the main services: API gateway, user service, market data service, order service, portfolio service, and clearing service. Choose appropriate data stores (e.g., time-series DB for quotes, relational for orders) and messaging for async communication.

3. Deep Dive into Critical Flows

Detail the order lifecycle: validation, risk checks, idempotency (using client-generated order IDs), routing to exchanges/market makers, and post-trade clearing. Explain how to maintain real-time balances and positions with cost basis and P&L.

4. Address Scalability, Reliability, and Compliance

Discuss partitioning, replication, and failover for high availability. Cover security (encryption, auth), regulatory reporting, and how to handle corporate actions (splits, dividends) via event-driven updates.

5. Summarize Trade-offs and Future Improvements

Highlight key trade-offs (e.g., consistency vs. availability, latency vs. cost) and suggest potential enhancements like ML for risk or blockchain for settlement.

Key Points to Mention

  • Idempotency in order placement using unique client order IDs and deduplication at the order service.
  • Real-time market data ingestion via WebSocket or Kafka, with streaming quotes to clients using pub/sub.
  • Order validation and risk checks (e.g., buying power, position limits) before routing.
  • Post-trade clearing and settlement, including integration with clearinghouses and reconciliation.
  • Portfolio and positions tracking with cost basis methods (FIFO, LIFO) and real-time P&L calculation.
  • Corporate actions handling through event sourcing and adjusting positions/balances accordingly.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q2

How would you handle the data model and storage strategy for orders, trades, account state, and market tick data? What are the consistency and latency tradeoffs between order state and portfolio views?

Data ModelingTechnical Trade-offsSystem Design
Author's notes

I went with separate stores: an append-only event log for orders and trades, a relational DB for account and position state, and a time-series store for ticks.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the domain and scale (e.g., Fanatics' e-commerce vs. trading systems), then propose a polyglot persistence strategy that matches each data type to an appropriate store. Explicitly discuss consistency and latency tradeoffs, especially between order state (strong consistency) and portfolio views (eventual consistency), and tie your choices to business requirements.

Pro tip: Frame the tradeoff as a business decision: strong consistency for orders prevents financial loss, while eventual consistency for portfolio views enables horizontal scale and low-latency reads. Mention that you'd validate with concrete SLAs and load estimates before committing.

1. Clarify requirements and scale

Ask about expected throughput, data volume, latency SLAs, and consistency requirements for each data type. This shows you don't jump to solutions without understanding the problem.

2. Propose a polyglot persistence strategy

Match each data type to a store: orders in a relational/ACID database, trades in an append-only log or time-series DB, account state in a strongly consistent KV store, and market ticks in a time-series or columnar store.

3. Explain consistency and latency tradeoffs

Contrast strong consistency for order state (to avoid overselling or double-spending) with eventual consistency for portfolio views (to allow fast, scalable reads). Discuss how CQRS and event sourcing can bridge the two.

4. Address data flow and synchronization

Describe how events propagate from the order system to update portfolio views asynchronously, and how you'd handle failures, retries, and idempotency.

5. Summarize with tradeoff rationale

Conclude by reiterating that the choices are driven by business needs: correctness for orders, availability and speed for views, and cost/operational complexity as a secondary factor.

Key Points to Mention

  • Polyglot persistence: using different databases for different data types (e.g., PostgreSQL for orders, Kafka for trades, Redis for account state, InfluxDB for market ticks).
  • Strong consistency (ACID) for order placement and account state to prevent financial discrepancies.
  • Eventual consistency for portfolio views to achieve low-latency, high-throughput reads.
  • CQRS and event sourcing as patterns to separate write and read models.
  • Idempotency and exactly-once processing to handle duplicate events in distributed systems.
  • Latency vs. consistency tradeoff: CAP theorem and the need to choose based on business impact.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q3

How would you decompose this system into services, and where would you use synchronous APIs versus asynchronous messaging? Describe your use of message queues and event sourcing.

System DesignTechnical Trade-offsAPI & Integrations
Author's notes

Went with something like: an order service, a market data service, a portfolio service, a risk service, and a notification service.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the system's domain and requirements, then propose a decomposition based on business capabilities and bounded contexts. For each service, justify the choice of synchronous APIs for request-response interactions versus asynchronous messaging for event-driven workflows, and explain how message queues and event sourcing support scalability and resilience.

Pro tip: Tie your decisions to concrete trade-offs like latency, consistency, and failure modes, and mention how you'd evolve the architecture over time—interviewers value pragmatic evolution over dogmatic patterns.

1. Clarify Requirements and Domain

Ask questions to understand the system's core functionality, scale, consistency needs, and team structure. Identify key business capabilities and data ownership boundaries.

2. Decompose into Services

Propose services aligned with bounded contexts (e.g., user, catalog, orders, payments). Explain how each service owns its data and exposes well-defined interfaces.

3. Choose Sync vs Async per Interaction

For each service interaction, decide between synchronous APIs (e.g., REST/gRPC) for immediate responses and asynchronous messaging for decoupling, buffering, and event propagation. Justify with trade-offs.

4. Design Messaging and Event Sourcing

Describe the use of message queues (e.g., Kafka, RabbitMQ) for reliable delivery and event sourcing for auditability and temporal queries. Explain how events drive state changes and enable eventual consistency.

5. Address Trade-offs and Evolution

Discuss challenges like consistency, debugging, and operational complexity. Suggest how to evolve the architecture incrementally, e.g., starting with a monolith and extracting services as needed.

Key Points to Mention

  • Bounded contexts and domain-driven design for service boundaries
  • Synchronous APIs for query/response and low-latency needs; asynchronous messaging for decoupling and scalability
  • Message queues for reliable delivery, retries, and backpressure
  • Event sourcing for audit trails, replayability, and temporal queries
  • Trade-offs: consistency vs availability, latency vs throughput, complexity vs flexibility
  • Idempotency and exactly-once processing in messaging

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q4

How do you design for scale and reliability during market open surges? What failure modes worry you most, and how do you handle a market data outage?

System DesignTechnical Trade-offsAdaptability & Ambiguity
Author's notes

Market open is the classic thundering herd problem for trading systems.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the scale and reliability requirements for market open surges, then outline a resilient architecture that handles high throughput and low latency. Discuss specific failure modes like thundering herd, data staleness, and partial failures, and explain mitigation strategies such as circuit breakers, fallbacks, and graceful degradation. Finally, detail a market data outage plan with redundancy, failover, and recovery procedures.

Pro tip: Emphasize the importance of monitoring and observability to detect anomalies early, and share a real-world example of how you handled a similar surge or outage. This shows practical experience and a proactive mindset.

1. Clarify Requirements and Constraints

Ask about expected peak load, latency SLAs, data consistency needs, and regulatory requirements to tailor your design.

2. Design for Scale and Reliability

Propose a horizontally scalable, fault-tolerant architecture using techniques like sharding, caching, async processing, and load shedding.

3. Identify Critical Failure Modes

Discuss failure modes such as thundering herd, cascading failures, data corruption, and network partitions, and how to mitigate them.

4. Handle Market Data Outages

Outline a strategy with redundant data feeds, automatic failover, stale data handling, and circuit breakers to prevent system-wide impact.

5. Ensure Observability and Continuous Improvement

Describe monitoring, alerting, and post-mortem processes to learn from incidents and improve resilience over time.

Key Points to Mention

  • Load balancing and auto-scaling to handle traffic spikes
  • Caching strategies (e.g., read-through, write-behind) to reduce database load
  • Circuit breakers and bulkheads to isolate failures
  • Idempotency and exactly-once processing for critical operations
  • Redundant market data feeds with automatic failover and health checks
  • Graceful degradation and fallback mechanisms (e.g., using last known good data)

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q5

What observability, compliance logging, and auditing would you build into this system? How would you handle incident response for a production failure?

System DesignRoot Cause Analysis
Author's notes

Pretty standard stuff here.

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AI HintsAI Generated

Suggested Approach

Start by outlining a layered observability strategy covering metrics, logs, and traces, then explain how you'd design compliance logging and auditing to meet regulatory and security needs. Finally, walk through a structured incident response process, emphasizing detection, mitigation, root cause analysis, and post-mortem improvements.

Pro tip: Tie your observability and incident response choices directly to business impact—like protecting revenue during peak traffic or ensuring customer trust—to show you think beyond just technical metrics.

1. Define Observability Pillars

Describe how you'd instrument the system with metrics (e.g., latency, error rates), structured logs, and distributed tracing to gain full visibility into system health and user experience.

2. Design Compliance Logging & Auditing

Explain how you'd capture immutable audit trails for sensitive actions, ensure log integrity and retention, and align with standards like GDPR, PCI-DSS, or SOX as relevant to Fanatics' e-commerce and sports betting domains.

3. Establish Incident Response Process

Outline a clear on-call and escalation path, with defined severity levels, communication protocols, and runbooks to quickly detect, triage, and mitigate production failures.

4. Conduct Root Cause Analysis & Post-Mortem

After resolving the incident, lead a blameless post-mortem to identify root causes, document lessons learned, and create action items to prevent recurrence.

5. Iterate and Improve

Close the loop by feeding insights back into observability and response plans, and regularly test incident readiness through game days or chaos engineering.

Key Points to Mention

  • Use of tools like Prometheus, Grafana, ELK stack, Jaeger, or Datadog for metrics, logging, and tracing.
  • Structured logging with correlation IDs to trace requests across microservices.
  • Immutable audit logs stored in write-once-read-many (WORM) storage or blockchain for tamper-proof compliance.
  • Incident severity classification and clear communication channels (e.g., Slack, PagerDuty) for stakeholders.
  • Blameless post-mortem culture and continuous improvement through action items.
  • Automated alerting and anomaly detection to reduce mean time to detection (MTTD) and mean time to resolution (MTTR).

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q6

How would you extend this design later to support options trading or cryptocurrency?

System DesignTechnical Trade-offsProduct Strategy
Author's notes

Saved the least prep time for this one and it showed.

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AI HintsAI Generated

Suggested Approach

Start by identifying the core abstractions in your current design that can be generalized, then outline how to extend them for new asset classes like options and crypto. Emphasize modularity, data model flexibility, and incremental delivery to manage complexity and risk.

Pro tip: Show awareness of domain-specific challenges (e.g., options pricing models, crypto volatility and 24/7 trading) and how they impact system design decisions like latency, consistency, and compliance.

1. Identify Core Abstractions

Review the current design to pinpoint components that are asset-agnostic, such as order management, matching engine, and portfolio tracking. Determine which parts need generalization versus specialization.

2. Extend Data Models

Propose flexible schemas that can represent diverse asset types, including options (with strikes, expiries, Greeks) and cryptocurrencies (with wallets, blockchain specifics). Consider using inheritance or composition in your domain model.

3. Adapt Business Logic

Outline how to incorporate new rules for options (e.g., exercise, assignment) and crypto (e.g., 24/7 trading, no settlement delay). Discuss pluggable strategy patterns or rule engines to isolate asset-specific logic.

4. Address Scalability and Performance

Explain how the system would handle increased load and different performance requirements, such as low-latency for options pricing or high throughput for crypto transactions. Mention horizontal scaling, caching, and async processing.

5. Plan Incremental Rollout

Describe a phased approach to add support, starting with a minimal viable feature set and iterating based on feedback. Highlight the importance of feature flags, monitoring, and rollback strategies.

Key Points to Mention

  • Modular architecture with clear separation of concerns to isolate asset-specific logic
  • Flexible data models that can accommodate new asset attributes without major refactoring
  • Domain-specific considerations: options pricing models (Black-Scholes), Greeks, and expiration handling; crypto wallets, blockchain integration, and 24/7 markets
  • Scalability patterns: horizontal scaling, sharding, and event-driven architecture to handle increased volume and velocity
  • Regulatory and compliance differences (e.g., SEC for options, varying crypto regulations)
  • Incremental delivery with feature toggles and A/B testing to reduce risk

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.