Market Making

Launch with liquidity

The Modulus Market Making System performs a complete aggregation and reconstruction of a global order book from multiple sources, including venues and liquidity providers, then hedges trades dynamically every fraction of a second. It can run stand-alone as a plug-and-play market-making engine, or alongside the Modulus Exchange Solution for extended liquidity, a combination heralded as one of the most flexible liquidity solutions available.

Aggregated global order book

The system reconstructs a single macro order book from many venues and liquidity providers, connecting over WebSocket and FIX 4.2, 4.4, and 5.0. Aggregated sources are streamed to the target exchange with fully programmable parameters, so operators control exactly how depth and pricing appear to their users.

The system is best suited to low-latency exchanges with central limit order books. It runs at a 100-millisecond refresh rate, which can be halved when hosted on the same server as the matching engine, making it an ideal companion to the Modulus engine while remaining a capable standalone solution.

Continuous dynamic hedging

The system works on net position and exposure. Whenever it detects a surplus or deficit, it executes a counter order at the best available price from any source feeding that pair. The process is fast and continuous, never stopping until it reaches a zero position, designed to keep the market maker hedged as long as sources are connected.

Because it operates on net position, trades that cancel each other within the same interval require no hedge at all, so no unnecessary fees are paid to source venues or liquidity providers.

Synthetic pairing

The system can construct any synthetic pair A/B as long as A/x and x/B source pairs are available, hedging each trade across the two underlying source pairs. This expands the set of tradable pairs you can offer well beyond what any single source provides.

Combined with smart order routing, synthetic pairing lets operators broaden their multi-asset markets without taking on the operational burden of sourcing every pair directly.

Built on a modern stack

Deeply customizable strategies

Known for the most customizable solutions in fintech, Modulus lets you tailor the entire liquidity stream to the target exchange, how the book is constructed, order sizes, and the levels, depth, and width of spread. Strategies can be extended through plugins written in C++, or scripts in other languages.

Market makers can also implement strategies on the source side for more sophisticated replication of order-book price levels, including TWAP, VWAP, and other variables.

• Single-source or multi-source aggregated order books
• Unlimited bots per pair with independent sources and spreads
• Per-bot profit margins, order counts, and refresh intervals
• Programmable streaming parameters to the target exchange
• Plugin architecture for custom hedging and routing logic
• Source-side TWAP, VWAP, and price-level replication

Fair and honest economics

Unlike most white-label providers, Modulus takes no part in the markups typically associated with liquidity solutions. We engage in no back-end deals with providers and accept neither royalty nor commission from them.

Clients receive technically optimized architecture that fits their needs better than anything else on the market, making the most of the full potential of the matching engine without bottlenecks, all at a lower cost than the alternatives.

Technical advantages

A multi-bot architecture engineered for throughput, with every process on its own thread and no lockstep synchronization to slow it down.

Configuration & control

Tune liquidity, hedging, and routing to match exactly how your venue should behave.