Algorithmic secondary market-making for listed exchange-traded funds in the markets we operate in. Continuous two-sided liquidity on listed ETFs with active creation and redemption discipline against the underlying basket.
ETF market-making sits between cash equity and the underlying basket. The operating model has to keep secondary-market quotes anchored to the indicative net asset value of the fund, while managing the cost of creation and redemption with the issuer or authorized participant. When the secondary price drifts from NAV, the maker steps in to arbitrage the gap. When it does not, the maker provides continuous quotes inside a tight band.
The pricing engine computes a real-time iNAV from the underlying basket weights and live prices, applies the appropriate cost-of-carry adjustment, and quotes the ETF against that reference. Creation and redemption activity is sized against the primary market schedule of each fund and against the maker’s position in the underlying constituents. Risk infrastructure tracks both the ETF position and the implied basket position as one consolidated exposure.
Engagement with East African ETF issuers and venue operators is underway. Operations follow the venue authorization for the product class. The deeper venue detail lives on the Markets pages.