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Liquidity provision and market-making technology
We provide the quoting engine, risk controls and day-to-day operation for brokerage firms' liquidity provision and market-making activities, from a single source.
You hold the authorisation; we run the technology and operation.
At Borsa Istanbul, the authorisation for market making and liquidity provision belongs to the exchange member brokerage firm. Meeting the obligations that come with it takes continuous two-sided quoting, real-time compliance with spread and size rules, inventory risk management and uninterrupted monitoring throughout the session.
TurQuant takes on the technology and operation of this work as a subcontractor. We build the quoting engine, connect it to your firm's infrastructure, run it through the session and report on it. You focus on your clients and your business.
Illustrative simulation: two-sided quotes that skew with inventory, executed trades and an inventory limit. Not real market data.
What we provide
Quoting engine
Continuous two-sided quotes according to spread, depth and time obligations, updated instantly as the market moves.
Inventory and risk management
Position limits, inventory-based quote skewing and, where needed, hedging in a related instrument.
Obligation monitoring
Real-time tracking of spread, size and time on quote, with an end-of-day compliance report.
Order routing
Low-latency connectivity from colocation over the OUCH and FIX protocols.
Product coverage
Equities, futures and options (VİOP), warrants and certificates; scope is set to your needs.
Controlled operation
Session-long monitoring, pre-trade risk controls and a one-click kill switch.
Strategy
How we quote.
Our quoting engine is built on the inventory-risk model at the core of the market-making literature: quotes are placed not around the mid price but around a reservation price that shifts with inventory. On top of this framework we have added layers that account for what happens in the field. We explain the mathematics of the model in this article.
Inventory-skewed pricing
As inventory builds up, the centre of the quotes shifts; the side you are long is priced more attractively and the other more cautiously.
Volatility-aware spread
The spread widens and tightens with live volatility and order-flow intensity, within the limits of the obligations.
Protection against informed flow
Order book imbalance and trade flow are monitored; when one-sided, informed flow is detected, quotes are pulled or widened.
Size and level management
Where the tick size swallows the shift the model calls for, inventory is managed through quote size and how it is spread across levels.
Queue priority
Unnecessary cancels and re-entries are avoided to keep priority in the order queue, which directly affects fill probability.
End-of-day discipline
Towards the close, inventory is brought down to target step by step, with a hedge in a related instrument where needed.
System
From data to order, one pipeline.
However good the strategy, it is only as fast and reliable as the system that carries it. The quoting engine runs on a pipeline we built ourselves, covering every step from market data to order routing.
Market data
The order book is rebuilt event by event from the ITCH feed and continuously checked for integrity.
Strategy engine
Quotes are recalculated on every book update, and only the changes that are needed are sent to the exchange.
Pre-trade risk layer
Price bands, maximum order size, position and loss limits are checked on every order before it reaches the exchange.
Order routing
Low-latency order routing over OUCH from servers in colocation; FIX for institutional integrations.
Monitoring dashboard
Quotes, inventory, executed trades and obligation metrics are monitored live throughout the session.
Logging and reporting
Every decision and every order is logged with a timestamp, and compliance and performance reports are produced at the end of the day.
Engagement model
As a subcontractor, on your behalf.
Trades are executed in your firm's account and on your firm's behalf. TurQuant handles installation, integration, parameter tuning, daily operation and reporting; the split of responsibilities and service levels are set out in the contract.
We can work with your existing infrastructure or deliver a turnkey setup that includes colocation and order routing.
Note: Market-making and liquidity provision are carried out by brokerage firms that are members of Borsa Istanbul. TurQuant provides technology and services for these activities and does not provide investment services.
Let's talk about your firm.
Share your product scope and obligations, and we will work out the right setup together.