Market Making

Discussion in 'ETFs' started by nnidhi3, Nov 6, 2009.

  1. nnidhi3



    I want to know about ETF market making process. In particular, what algorithm, if any, is used to give quotes. How often and to what extent do you hedge your position? How do you incorporate your market views, others' quotes and your existing position to give a price quote?

    If any system has to be built on these lines, it seems it would be quite a complex one, since it has to be intelligent enough to quote prices taking all these infos into account.

  2. don't overlook creation / redemption costs
  3. cvds16


    you don't seriously think anyone is going to give away their algo here ?
    You will have to invent your own.