Software for Cryptocurrency Liquidity Providers

based on Empirica’s proprietary algorithmic engine

with direct access to major cryptocurrency exchanges and traditional markets.

IF YOU ARE A LIQUIDITY PROVIDER

  • PROVEN ON TRADITIONAL & CRYPTO MARKETS

    To set up your market making operations it is key to go with a proven partner. Empirica supports liquidity providers since 2011 combining experience from capital, derivatives, forex and cryptocurrency markets.

  • ADVANCED MECHANISMS FOR RISK CONTROL

    You have a direct control on your inventory risk. You can parametrize the behaviour of your market making strategies by setting the spread, aggressiveness, inventory management and hedging.

  • USE PRE-BUILT LIQUIDITY STRATEGIES AND EXTEND THEM

    With us you avoid black-box liquidity algos which you can’t control or extend with proprietary logic.  You can jump start with our pre-build strategies and then extend them either with the help of our quant team our help or with your own developers. The intellectual property stays with you.

IF YOU RUN CRYPTO EXCHANGE

  • TAKE CONTROL OVER CRUCIAL ASPECT OF YOUR EXCHANGE

    Liquidity is a crucial aspect of your exchange. It often makes sense to build your own market making operations. In such case you can control the liquidity and how it’s provided.

  • BUILD MARKET DEPTH ON YOUR ORDER BOOKS

    Listing new products makes sense if you can assure your investors will be able to trade it. Nothing scares investors as much as to not have counterparty to their transactions. Help your products grow by providing basic level of liquidity, trust and confidence to your investors  and attract organic volume and scale your operations further. No more empty order books.

  • USE LIQUIDITY FROM OTHER EXCHANGES

    Use the power of your competitors to scale up your business. Mirror prices from other exchanges and hedge your operations automatically with best prices from other exchanges.

Major elements you can expect with our software:

  • CONTROL ALL ASPECTS OF MARKET MAKING OPERATIONS

    You can parametrize the behaviour of your market making operations by configuring the algorithms on how to:

      • provide the liquidity with parameters determining the aggressiveness, spreads, risk control, midpoint calculation and many other aspects
      • manage your inventory balance
      • automatically hedge your positions
  • DEDICATED QUANT TEAM

    Let our team of quant developers will help you build your proprietary algorithms. WeThey have experience working on market making algorithms with investment banks, brokerage firms, crypto exchanges and hedge funds.

  • SET OF PRE-BUILT LIQUIDITY & EXECUTION ALGORITHMS

    With us you avoid black-box liquidity algos which you can’t control or extend with proprietary logic.  Market Making, Depth Distribution, Price Mirroring, Hedging, Smart Order Routing, VWAP, TWAP, Sniper, Arbitrage and various complex order types.

  • ALGO ENGINE THAT ALLOWS YOU TO BUILD YOUR OWN STRATEGIES

    You can jump start with our pre-build strategies. Later e but  then you can extend them either with the help of our quant team our help or with your own developers. The intellectual property stays with you.

    Our Open strategy API allows you to design, code and run your ideas.

  • INSTITUTIONAL GRADE PERFORMANCE

    Run your market making with our low latency and high throughput system, proven with institutional market makers on capital markets.

  • FULL TECHNOLOGY SET-UP

    We set up the whole technology for you, install and configure the software in the cloud or on your premises, integrate with chosen exchanges and provide ongoing technical support.

  • POWER UP YOUR EXCHANGE TECHNOLOGY

    Let us help you build and integrate modules like FIX Gateways for institutional investors or matching engine simulators. We can integrate the system with any other exchange or other external components.

  • PROVIDE YOUR INVESTORS WITH PROFESSIONAL ALGORITHMIC TOOLS

    To achieve competitive advantage over other exchanges by armingwe can jointly arm your investors with very powerful algorithmic trading tools. Algorithmic investors make over 10x more transactions than average. Let us provide your investors with pre-build algorithms and advanced order types that will be integrated directly with your matching engine.

  • CONNECTIVITY TO MAJOR CRYPTO EXCHANGES

    With our system you will be integrated with major exchanges from day one, but you can also request building a connector to any other exchange or liquidity provider.

    Make markets on already supported exchanges or request building a new connector to any other exchange or  liquidity provider

Capture market share

Low-latency trading engine optimized for market making.

  • Low-latency server-based asynchronous quoting engine
  • Native simultaneous connectivity to multiple crypto and traditional exchanges
  • Monitoring logic to take out market opportunities inside the quoted spreads

Minimize risk

Sophisticated market making workflow.

  • Seamlessly combine market making and manual trading
  • Parameterized algorithms can be changed on the fly (e.g. spreads, reference prices)
  • Post trade risk and P&L information to support trading
  • Notifications let traders act on important events with the click of a button.
  • View and analyze executed trades.
  • Adapt quoting style to market conditions.
Software development outsourcing

Outcomes when using Empirica for liquidity provision:

  • Proactive oversight of execution quality across various crypto exchanges
  • Reduced exposure to price slippage
  • Optimized performance and quality of data feeds
  • Reduced risk of service quality degradation and outages
  • Accelerated troubleshooting and resolution of service quality problems
  • Improved return on development investment

For whom

  • Professional market makers
  • Crypto exchanges (liquidity provision)
  • ICO issuers (liquidity of their tokens)
  • Sophisticated crypto investors & arbitrageurs

How to start providing liquidity with Empirica

  • 1. TEST

    Test core MM algorithm on empirica.io platform

  • 2. EXTEND

    Include your proprietary logic to core algorithms (or implement yours from scratch with our Open API). You can count on help of our quantitative development team.

  • 3. CONNECT

    Choose exchanges you want to provide liquidity to from the growing list of integrated crypto exchanges.

  • 4. START

    Start making the markets for chosen cryptocurrencies

Automated trading system

Challenges Liquidity Providers face

Today’s marketing 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.

It is critical for market makers to develop highly optimized algorithms for price analysis and quoting.

Research, Back-testing & Simulation

It’s critical to use the same algorithms for research and production. Both price construction and hedging algorithms are designed, back-tested and simulated in Empirica against historical data. Once developed and refined, models are deployed into the production market making environment.

Empirica allows you also to use its own simulated matching engine to test all possible scenarios not available in paper trading or exchange staging environments.

Smart Order Routing

Individual order books from multiple crypto exchanges are aggregated into one view and our adaptive Smart Order Routing algorithms define the best execution plan and split orders for best execution at multiple venues.

Algorithmic trading system