Integration of Market Maker Prices for Exchanges and Brokers
KB TECH has deployed a range of its Market Making tools to deliver the business requirements of Exchanges that are looking to provide easy access to their markets for relevant organisations (e.g. Market Makers) that would increase liquidity and trading volume. Having identified such liquidity provider type organisations Exchanges are often faced with that organisation, whilst willing to provide its prices, is unwilling to make any changes to their internal systems or deploy resource on interfacing to the Exchanges’ trading platform.
In addition to being both easy and fast to deploy the Exchange’s requirements on KB TECH’s pricing integration solution included:
- Flexibility to cater for different source systems
- Low latency
- Limit Exposure
A specific example involved a member of the Exchange acting as Fuel Oil Market Maker whose internal pricing system was based on a spread sheet system with live updates across some 150 instruments, both outrights and spreads, updating every second.
Another example was an exchange member operating as a Market Maker in Iron Ore with an in-house platform built on Microsoft .NET. To meet the Exchange’s launch targets KB TECH provided a separate “DMZ” area of the TDI bus with a “Smart-Router” service enabling the Market Maker to communicate with the TDI bus.
KB TECHs Market Making tools injected these prices into the Exchanges trading platform with minimal latency together with check and control mechanisms for the Market Maker and Exchange. This was undertaken with zero development overhead or operational duplication for the Market Maker thus positively influencing its willingness to provide liquidity to the Exchange.