diff --git a/docker-compose.yml b/docker-compose.yml
index 6d31206..19b226b 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -42,6 +42,15 @@ services:
         condition: service_started
     working_dir: /var/www/matching-engine
 
+  gsy-execution-engine:
+    container_name: gsy-execution-engine
+    build:
+      dockerfile: ./gsy-execution-engine/Dockerfile
+    depends_on:
+      gsy-orderbook:
+        condition: service_started
+    working_dir: /var/www/execution-engine
+
   mongodb:
     image: mongo:5.0
     ports:
diff --git a/gsy-execution-engine/Cargo.toml b/gsy-execution-engine/Cargo.toml
new file mode 100644
index 0000000..26e6487
--- /dev/null
+++ b/gsy-execution-engine/Cargo.toml
@@ -0,0 +1,23 @@
+[package]
+name = "gsy-execution-engine"
+version = "0.1.0"
+authors = ["Grid Singularity <info@gridsingularity.com>"]
+edition = "2021"
+description = "Execution Engine for the Grid Singularity Energy Exchange"
+
+[dependencies]
+anyhow = "1"
+chrono = { version = "0.4.37", features = ["serde", "rustc-serialize"]}
+clap = { version = "4", features = ["derive"] }
+reqwest = { version = "0.11", features = ["json"] }
+serde = { version = "1.0", features = ["derive"] }
+serde_json = "1.0"
+tokio = { version = "1", features = ["macros", "rt-multi-thread"] }
+tracing = { version = "0.1", features = ["log"] }
+tracing-bunyan-formatter = "0.3"
+tracing-log = "0.2"
+tracing-subscriber = { version = "0.3", features = ["registry", "env-filter"] }
+
+[[bin]]
+name = "gsy-execution-engine"
+path = "src/main.rs"
diff --git a/gsy-execution-engine/Dockerfile b/gsy-execution-engine/Dockerfile
new file mode 100644
index 0000000..9de7955
--- /dev/null
+++ b/gsy-execution-engine/Dockerfile
@@ -0,0 +1,9 @@
+FROM rust:1.80
+
+WORKDIR /var/www/gsy-execution-engine
+
+COPY . /var/www/gsy-execution-engine
+
+RUN cargo build --release
+
+ENTRYPOINT ["/var/www/gsy-execution-engine/target/release/gsy-execution-engine", "web3", "http://gsy-orderbook", "8080", "ws://gsy-node", "9944", "30"]
diff --git a/gsy-execution-engine/src/connectors/mod.rs b/gsy-execution-engine/src/connectors/mod.rs
new file mode 100644
index 0000000..f2e5666
--- /dev/null
+++ b/gsy-execution-engine/src/connectors/mod.rs
@@ -0,0 +1,2 @@
+pub mod offchain_storage;
+pub mod substrate_connector;
diff --git a/gsy-execution-engine/src/connectors/offchain_storage.rs b/gsy-execution-engine/src/connectors/offchain_storage.rs
new file mode 100644
index 0000000..e85c714
--- /dev/null
+++ b/gsy-execution-engine/src/connectors/offchain_storage.rs
@@ -0,0 +1,41 @@
+use anyhow::{Result, anyhow};
+use reqwest::Client;
+use crate::primitives::{
+    trades::Trade,
+    measurements::Measurement
+};
+
+pub async fn fetch_trades_and_measurements_for_timeslot(
+    base_url: &str,
+    timeslot: &str,
+) -> Result<(Vec<Trade>, Vec<Measurement>)> {
+    let client = Client::new();
+
+    // TODO: we might have an endpoint like /trades?timeslot=YYYY-MM-DD-HH
+    let trades_url = format!("{}/trades?timeslot={}", base_url, timeslot);
+    let measurements_url = format!("{}/measurements?timeslot={}", base_url, timeslot);
+
+    // 1) Fetch trades
+    let trades_resp = client.get(&trades_url).send().await?;
+    if !trades_resp.status().is_success() {
+        return Err(anyhow!(
+            "Failed to fetch trades for timeslot {}: HTTP {}",
+            timeslot,
+            trades_resp.status()
+        ));
+    }
+    let trades: Vec<Trade> = trades_resp.json().await?;
+
+    // 2) Fetch measurements
+    let measurements_resp = client.get(&measurements_url).send().await?;
+    if !measurements_resp.status().is_success() {
+        return Err(anyhow!(
+            "Failed to fetch measurements for timeslot {}: HTTP {}",
+            timeslot,
+            measurements_resp.status()
+        ));
+    }
+    let measurements: Vec<Measurement> = measurements_resp.json().await?;
+
+    Ok((trades, measurements))
+}
\ No newline at end of file
diff --git a/gsy-execution-engine/src/connectors/substrate_connector.rs b/gsy-execution-engine/src/connectors/substrate_connector.rs
new file mode 100644
index 0000000..6614d7f
--- /dev/null
+++ b/gsy-execution-engine/src/connectors/substrate_connector.rs
@@ -0,0 +1,15 @@
+use anyhow::Result;
+use tracing::info;
+use crate::primitives::penalty_calculator::Penalty;
+
+pub async fn submit_penalties(
+    node_url: &str,
+    penalties: &[Penalty],
+) -> Result<()> {
+    if penalties.is_empty() {
+        info!("No penalties to submit.");
+        return Ok(());
+    }
+    // TODO: actual extrinsic logic
+    Ok(())
+}
diff --git a/gsy-execution-engine/src/main.rs b/gsy-execution-engine/src/main.rs
new file mode 100644
index 0000000..a87f78d
--- /dev/null
+++ b/gsy-execution-engine/src/main.rs
@@ -0,0 +1,49 @@
+mod primitives;
+mod services;
+mod connectors;
+mod utils;
+
+use clap::Parser;
+use tracing::{error, info};
+use utils::cli::{Cli, Commands};
+use utils::telemetry::{get_subscriber, init_subscriber};
+use services::execution_orchestrator::run_execution_cycle;
+
+#[tokio::main]
+async fn main() {
+    let subscriber = get_subscriber("gsy-execution-engine", "info", std::io::stdout);
+    init_subscriber(subscriber);
+
+    let cli = Cli::parse();
+    match cli.command {
+        Commands::Web3 { 
+            offchain_host,
+            offchain_port,
+            node_host,
+            node_port,
+            polling_interval 
+        } => {
+            info!("Starting engine...");
+            let offchain_url = format!("{}:{}", offchain_host, offchain_port);
+            let node_url = format!("{}:{}", node_host, node_port);
+
+            loop {
+                let timeslot = generate_previous_timeslot();
+                if let Err(e) = run_execution_cycle(&offchain_url, &node_url, &timeslot).await {
+                    error!("Cycle failed for {}: {:?}", timeslot, e);
+                }
+                info!("Sleeping for {}s...", polling_interval);
+                tokio::time::sleep(std::time::Duration::from_secs(polling_interval)).await;
+            }
+        }
+    }
+}
+
+fn generate_previous_timeslot() -> String {
+    use chrono::{Utc, Duration};
+    
+    let now = Utc::now();
+    let prev = now - Duration::seconds(30);
+
+    prev.format("%Y-%m-%dT%H:%M:%SZ").to_string()
+}
diff --git a/gsy-execution-engine/src/primitives/measurements.rs b/gsy-execution-engine/src/primitives/measurements.rs
new file mode 100644
index 0000000..d875569
--- /dev/null
+++ b/gsy-execution-engine/src/primitives/measurements.rs
@@ -0,0 +1,10 @@
+use serde::Deserialize;
+
+/// TODO: Change with the offchain storage returned struct
+#[derive(Debug, Deserialize)]
+pub struct Measurement {
+    pub area_uuid: String,
+    pub energy: f32,
+    pub timestamp: String,
+    // ...
+}
\ No newline at end of file
diff --git a/gsy-execution-engine/src/primitives/mod.rs b/gsy-execution-engine/src/primitives/mod.rs
new file mode 100644
index 0000000..32960ee
--- /dev/null
+++ b/gsy-execution-engine/src/primitives/mod.rs
@@ -0,0 +1,3 @@
+pub mod trades;
+pub mod measurements;
+pub mod penalty_calculator;
\ No newline at end of file
diff --git a/gsy-execution-engine/src/primitives/penalty_calculator.rs b/gsy-execution-engine/src/primitives/penalty_calculator.rs
new file mode 100644
index 0000000..46fe45c
--- /dev/null
+++ b/gsy-execution-engine/src/primitives/penalty_calculator.rs
@@ -0,0 +1,17 @@
+use super::{trades::Trade, measurements::Measurement};
+
+#[derive(Debug)]
+pub struct Penalty {
+    pub area_uuid: String,
+    pub penalty_energy: f32,
+}
+
+pub fn compute_penalties(
+    trades: &[Trade], 
+    measurements: &[Measurement]
+) -> Vec<Penalty> {
+    // TODO: 
+    // e.g. penalty = measured_energy - traded_energy if it's > 0, etc.
+    // ...
+    Vec::new() // placeholder
+}
diff --git a/gsy-execution-engine/src/primitives/trades.rs b/gsy-execution-engine/src/primitives/trades.rs
new file mode 100644
index 0000000..06bcb72
--- /dev/null
+++ b/gsy-execution-engine/src/primitives/trades.rs
@@ -0,0 +1,11 @@
+use serde::Deserialize;
+
+/// TODO: Change with the offchain storage returned struct
+#[derive(Debug, Deserialize)]
+pub struct Trade {
+    pub area_uuid: String,
+    pub energy: f32,
+    pub price: f32,
+    pub time_slot: String,
+    // ...
+}
diff --git a/gsy-execution-engine/src/services/execution_orchestrator.rs b/gsy-execution-engine/src/services/execution_orchestrator.rs
new file mode 100644
index 0000000..9d543f5
--- /dev/null
+++ b/gsy-execution-engine/src/services/execution_orchestrator.rs
@@ -0,0 +1,41 @@
+use anyhow::Result;
+use tracing::info;
+
+use crate::{
+    primitives::{
+        penalty_calculator::{compute_penalties, Penalty},
+        trades::Trade,
+        measurements::Measurement,
+    },
+    connectors::{
+        offchain_storage::fetch_trades_and_measurements_for_timeslot,
+        substrate_connector::submit_penalties,
+    },
+};
+
+/// Higher-level function that does the repeated/polling logic
+/// 1) fetch trades/measurements
+/// 2) compute penalties
+/// 3) submit them
+pub async fn run_execution_cycle(
+    offchain_url: &str,
+    node_url: &str,
+    timeslot_str: &str,
+) -> Result<()> {
+    // 1) fetch trades/measurements
+    let (trades, measurements) = fetch_trades_and_measurements_for_timeslot(offchain_url, timeslot_str).await?;
+    info!(
+        "Fetched {} trades, {} measurements for timeslot {}",
+        trades.len(),
+        measurements.len(),
+        timeslot_str
+    );
+
+    // 2) compute penalties
+    let penalties: Vec<Penalty> = compute_penalties(&trades, &measurements);
+    info!("Computed {} penalties", penalties.len());
+
+    // 3) submit penalties
+    submit_penalties(node_url, &penalties).await?;
+    Ok(())
+}
diff --git a/gsy-execution-engine/src/services/mod.rs b/gsy-execution-engine/src/services/mod.rs
new file mode 100644
index 0000000..e2f62ba
--- /dev/null
+++ b/gsy-execution-engine/src/services/mod.rs
@@ -0,0 +1 @@
+pub mod execution_orchestrator;
diff --git a/gsy-execution-engine/src/utils/cli.rs b/gsy-execution-engine/src/utils/cli.rs
new file mode 100644
index 0000000..e595f30
--- /dev/null
+++ b/gsy-execution-engine/src/utils/cli.rs
@@ -0,0 +1,28 @@
+use clap::{Parser, Subcommand};
+
+#[derive(Parser, Debug)]
+#[clap(author, version, about)]
+pub struct Cli {
+    #[clap(subcommand)]
+    pub command: Commands,
+}
+
+#[derive(Subcommand, Debug)]
+pub enum Commands {
+    Web3 {
+        #[clap(default_value_t = String::from("http://127.0.0.1"))]
+        offchain_host: String,
+
+        #[clap(default_value_t = String::from("8080"))]
+        offchain_port: String,
+
+        #[clap(default_value_t = String::from("ws://127.0.0.1"))]
+        node_host: String,
+
+        #[clap(default_value_t = String::from("9944"))]
+        node_port: String,
+
+        #[clap(default_value_t = 30)]
+        polling_interval: u64,
+    },
+}
diff --git a/gsy-execution-engine/src/utils/mod.rs b/gsy-execution-engine/src/utils/mod.rs
new file mode 100644
index 0000000..acad601
--- /dev/null
+++ b/gsy-execution-engine/src/utils/mod.rs
@@ -0,0 +1,2 @@
+pub mod cli;
+pub mod telemetry;
\ No newline at end of file
diff --git a/gsy-execution-engine/src/utils/telemetry.rs b/gsy-execution-engine/src/utils/telemetry.rs
new file mode 100644
index 0000000..883c7b6
--- /dev/null
+++ b/gsy-execution-engine/src/utils/telemetry.rs
@@ -0,0 +1,30 @@
+use tracing::subscriber::set_global_default;
+use tracing::Subscriber;
+use tracing_bunyan_formatter::{BunyanFormattingLayer, JsonStorageLayer};
+use tracing_log::LogTracer;
+use tracing_subscriber::fmt::MakeWriter;
+use tracing_subscriber::{layer::SubscriberExt, EnvFilter, Registry};
+
+pub fn get_subscriber<Sink>(
+    name: &str,
+    env_filter: &str,
+    sink: Sink,
+) -> impl Subscriber + Send + Sync
+where
+    Sink: for<'a> MakeWriter<'a> + Send + Sync + 'static,
+{
+    let env_filter = EnvFilter::try_from_default_env().unwrap_or_else(|_| EnvFilter::new(env_filter));
+    
+    let formatting_layer = BunyanFormattingLayer::new(name.to_string(), sink);
+
+    Registry::default()
+        .with(env_filter)
+        .with(JsonStorageLayer)          
+        .with(formatting_layer)          
+}
+
+pub fn init_subscriber(subscriber: impl Subscriber + Send + Sync) {
+    LogTracer::init().expect("Failed to initialize LogTracer");
+
+    set_global_default(subscriber).expect("Failed to set global tracing subscriber");
+}