Why every investor must use a Professional Market Maker?

market maker

Key Qualities of a Market Maker:

  • Price improvement
  • Depth of liquidity
  • Service offering whatever the financial climate
  • Flexibility
  • Broad coverage
  • Immediacy of dealing
  • Bespoke technology solutions

Problem statement

According to Corvil : Today’s market making business leaves little room for second best in technology and infrastructure. Successful market makers must operate a predictable, reliable low-latency trading environment. Market makers must be as fast as the fastest traders on the venue they are providing liquidity on.

The reason why every investor must use a professional market maker to manage assets:

MANAGE QUOTING

  • Detect gaps in market data
  • Optimize quote latency response
  • Reduce Mean Time to Resolve
  • Track order life cycle precisely
  • Reduce order gateway latency

MANAGE SYSTEMS

  • Validate performance of gateways
  • Benchmark performance of software updates
  • Quickly troubleshoot problems
  • Police and hold accountable service providers
  • Offload logging to speed up performance

MANAGE VENUES

  • Analyze exchange latency
  • Balance flows across gateways
  • Monitor connectivity health
  • Analyze throttling on order flow
  • Measure order to tick for venue

As a market maker;

  • Managing market data quality and performance
  • Making Sure You Never Miss an Order
  • Right-Sizing your Systems so you are “Fast Enough”

Trade performance analytics are:

Fill rate: Order tracking state is used to monitor the success or failure of orders through the fill-rate calculation – the percentage of the request volume that was filled.

Tick to order: Calculates the algorithm response latency – the time from receipt of the triggering tick to the transmission of the order.

Order to tick: Calculates the venue response latency – the time from transmission of an order to receipt of tick update on the venue feed reflecting the trade.

Order response: Calculates the venue order response latency – the time from transmission of an order to receipt of acknowledgment of the order from the venue.

Gap detection: Track the sequence numbers of all multicast market data feeds, and use this tracking to report and alert on any gaps.

Relative latency: Calculates the relative latency between two measured events with time-stamps from a common time reference.

Brand width protection: Calculates an estimate of the amount of bandwidth need to meet a quality of service objective for a given traffic load e.g. a market data feed.

You can also read, how AI helps market makers.