Market Maker

The Best Visibility, Analytics And Reporting When Speed Really Matters

The Corvil solution for market makers is used by those who need the best visibility, analytics, and reporting to achieve transparency and determinism in their operations. Market makers must operate in extremely high-speed low-latency trading environments to efficiently cover both sides of a trade and meet their liquidity obligations. Corvil is the platform of choice for these businesses to operate.

Problem Overview

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.

Best in class tools are needed to provide visibility, optimization, troubleshooting, data capture and reporting of all electronic activity related to the business of making markets. Traditionally, market makers have built their own tools in-house to maximize competitive advantage. However, that has changed in recent time.

The cost of developing and maintaining these tools is prohibitive as the business expands to more markets, more asset classes and the burden of regulatory obligation increases.

Solution Overview

Corvil provides microsecond machine-time visibility and real-time analysis of both order transaction and market data processes capable of handling the most demanding market making environments. The latency of every order sent and every tick received can be measured and analyzed through every infrastructure hop. All messages involved are captured, analyzed, recorded and can be streamed to external BI and data warehousing systems for further forensics and reporting.

The Corvil solution can be used both for production and lab testing. It is critical for market makers to develop highly optimized algorithms for price analysis and quoting. Corvil can be used to measure, test and assure the quality of this software in advance for production deployment. Once deployed, Corvil assures the performance goals of the business and mitigates risk of outage and service degradation. Corvil can be used to collect a precision machine-time data record of all transactions and maintains a forensic audit-trail record of all messages involved in a transaction as required by new regulations like MiFID II.

Outcomes

  • Proactive oversight of execution quality across various venues

  • Nanosecond precision visibility, analysis and audit trail across entire order life-cycle

  • Reduced exposure to price slippage on exchanges

  • Optimized performance and quality of data feeds

  • Reduced risk of service quality degradation and outages

  • Accelerated troubleshooting and resolution of service quality problems

  • Lower regulatory tail-risk with trusted data to show compliance

  • Improved return on development investment

"At Flow Traders we are constantly looking to put in place the best tools and processes to optimize the performance and transparency of our IT systems, while minimizing operational risk. Corvil was the only platform capable of meeting our demands."

THOMAS WOLFF, GLOBAL HEAD OF IT
FLOW TRADERS


Manage Quoting

  • Detect gaps in market data

  • Optimize quote latency response

  • Reduce Mean Time to Resolve

  • Track order lifecycle precisely

  • Reduce order gateway latency

Manage IT 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

  • Analyse exchange latency

  • Balance flows across gateways

  • Monitor connectivity health

  • Analyse throttling on order flow

  • Measure order to tick for venue

"We are getting visibility and trust in our ability to monitor for issues we have not had before from other tools. Everything from the customizations, to viewing the data collected in near real-time has had a profound impact on our organization."

IT SPECIALIST
S&P 500 FINANCIAL SERVICES COMPANY

Trade Performance Analytics

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.

Microburst Analysis - Calculates the volume of a specified metric for short-timescales, e.g. the number of messages received in 1ms.

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.

Bandwidth 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.