API Console
Executive Summary
This Service Domain enables the bank to fulfill its market making function typically in collaboration with a trading exchange. The bank maintains a buy/sell quote for the securities it supports as a market maker and accepts buy/sell orders on request
Examples of Use
A financial institution acts as the market maker for a number of market assets/securities. Buy and sell trades are automatically captured and the pricing adjusted to maintain a limited net position by influencing buy/sell decisions
Role Definition
Market making ensures liquidity in the markets as the market maker provides a buy/sell quote (typically in coordination with the exchange) for the security and guarantees that they will accept orders. The market maker will adjust the quote to manage their position and generates profit from the margin between buy and sell prices.
Related Business Scenarios
Core Business Object
Key Features
- Monitor securities trading activity to determine appropriate pricing as market maker
- Publish buy sell quotes for market making securities
- Accept and process buy and sell orders for market making securities