Market Making

objective

Operate cash-market making strategies with inventory balance and quote-quality controls.

workflow

1. define quote width, size, and inventory skew rules by symbol.
2. update quotes based on order-flow imbalance and volatility state.
3. hedge inventory with minimal market impact and latency drag.
4. monitor adverse selection and stale-quote loss behavior.
5. deploy only when spread capture remains positive net of hedging.

required diagnostics

• bid-ask capture versus adverse-selection cost.
• inventory skew and rebalance efficiency metrics.
• stale-quote and cancel-replace latency diagnostics.
• venue-level fill quality and toxicity indicators.
• net pnl decomposition by spread, rebate, and hedge cost.