Generate deep liquidity and create efficient markets

with Liquidity Engine, a sophisticated cryptocurrency market making software

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 strategy by setting the spread, aggressiveness, inventory management and hedging.

  • USE PRE-BUILT MARKET MAKING STRATEGY AND EXTEND IT

    With us you avoid black-box market making bots which you can’t control or extend with proprietary logic.  You can jump start with our pre-build market making strategy and then extend it either with the help of our quant team 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.

Schedule your appointment right now and see
how our market making software works

Major elements you can expect with our crypto market making software

  • CONTROL ALL ASPECTS OF MARKET MAKING OPERATIONS

    You have a full control over your market making strategy by parametrizing the algorithm 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 help you build your proprietary algorithms. They have wast experience in implementing market making bots and algorithms for investment banks, brokerage firms, crypto exchanges and hedge funds. More on trading algorithms development.

  • SET OF PRE-BUILT LIQUIDITY & EXECUTION ALGORITHMS

    With us you avoid black-box market making bots 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 ALGORITHMS

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

    Our Open strategy API allows you to design, code and run trading algorithms. More on our Algorithmic Trading Software

  • 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. Read more on crypto exchange software development

  • PROVIDE YOUR INVESTORS WITH PROFESSIONAL ALGORITHMIC TOOLS

    To achieve competitive advantage over other exchanges we can jointly arm your investors with 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.

  • Institutional grade performance

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

Connectivity to major and niche crypto exchanges

When using our system you are integrated with major crypto exchanges from day one. The list of connectors that are built, maintaned and updated with every change in API is growing and includes exchanges like Coinbase, Bitmex, Binance, Bitbay.

As a customer you can influence our development team’s roadmap for next connectors. You can also request building a connector to any other exchange, OTC broker or crypto liquidity provider. Currently our roadmap for next months includes exchanges like Kraken, Gemini, Bitstamp, Deribit or Bitfinex. More on our crypto software development

WHY MARKET MAKING BOTS ARE NO LONGER ENOUGH FOR MARKET MAKING?

Providing liquidity is a constant process where your money is always at risk. Therefore it is all about stability, performance, precision and adoption to changing conditions and evelving exchanges’ APIs. To do market making with profit, you need to use software build on architecture that addresses these requirements, otherwise you will lose with those that do. Trading bots are doing fine with some alpha or execution strategies. But for efficient and profitable liquidity provision, usage of market making bots may be not enough.

Capture market share

Low-latency trading engine optimized for crypto market making strategy.

  • Server-based asynchronous quoting engine
  • Native simultaneous connectivity to multiple crypto, forex brokers and stock exchanges (like Coinbase, Binance, Bitmex, Bitbay, Interactive Brokers etc)
  • Monitoring logic of the market making strategy to take out opportunities inside the quoted spreads

For whom

  • Professional cryptocurrency market makers
  • Crypto exchanges (liquidity provision)
  • ICO issuers (liquidity of tokens)
  • Sophisticated crypto investors & arbitrageurs
  • Users of market making bots, that came to bots’ technology limits

Outcomes when using Liquidity Engine for market making

  • 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 compared to market making bots

Minimize risk

Sophisticated crypto market making workflow.

  • Adapt market making strategy quoting style to market conditions
  • Seamlessly combine crypto 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

How to start providing liquidity on cryptoexchange?

  • 1. TEST

    Test core market making algorithm on Empirica Liquidity Engine platform

  • 2. EXTEND

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

  • 3. CONNECT

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

  • 4. START

    Start making the markets for chosen cryptocurrencies with your strategy (And btw throw away your market making bot:)

Algorithmic trading

Challenges Liquidity Providers face

Today’s cryptocurrency market making business leaves little room for second best in technology and infrastructure, not to mention about proprietary market making bots. To be profitable, crypto market makers must operate a predictable, reliable low-latency trading environment. They need to 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, inlcuding bots that with time come the their own technical limits. However, that has changed in recent time.

The cost of developing and maintaining the software is prohibitive as the business expands to more markets and tokens and the limits of home grown technologies (market making bots) are met. We have seen that many times as we are in trading software development business for over 10 years, assisting our customers with technological challanges.

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

Strategy research, backtesting & simulation

It’s critical to use the same cryptocurrency market making 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, market making strategy is deployed into the production 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 algorithm defines the best execution plan and split orders for best execution at multiple venues.

Algorithmic trading system
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