The document discusses Orc Trading's market making solution. It helps firms increase quoting in competitive markets through a high-throughput trading engine, minimize risk exposure with ultra-low latency connectivity, expand market making to new instruments and markets, reduce costs with a scalable platform that automates quoting, and improve quoting with accurate pricing models. The solution provides features like a low-latency quoting engine, mass quoting functionality, sophisticated volatility and pricing management, and the ability to trade different asset classes across multiple exchanges.

1. ORC TRADING FOR
MARKET MAKING
IMPROVE YOUR MARKET MAKING WITH FASTER QUOTING AND
MULTIPLE MARKET ACCESS
Improve quote timeliness. Expand your business. Win market share.
Market making has never been more competitive. The need to reduce latency and
be one of the first in and out of a market is paramount to success. With thinning
margins, many firms are also looking for ways to grow their business. Trading
solutions that provide ultra-low latency liquidity access to existing and new markets
worldwide have become the key drivers for many market makers today.
ORC TRADING FOR MARKET MAKING HAS HELPED FIRMS:
• Increase quoting in competitive markets with a high-throughput trading engine
• Minimize risk exposure with ultra-low latency connectivity
• Expand market making to new instruments and new markets
• Reduce costs by providing a scalable platform that automates quoting for greater productivity
• Improve quoting with accurate pricing based on pre-built or custom models
ORC TRADING
TAKE ADVANTAGE

2. WHO NEEDS ORC TRADING FOR
MARKETING MAKING?
CEOS AT MARKET MAKING FIRMS TRADERS AT MARKET MAKING firms TRADING STRATEGY DEVELOPERS
need cost-effective solutions to in- who need to win more trades while who need to quickly create and deploy
crease profitability and grow their reducing their risk and exposure. market making strategies to take
business. advantage of changing markets.
• Would you be able to make more
• When growing your business, would money if you could respond to market • When creating proprietary trading
you be able to increase your revenues events faster than the competition? strategies would you be able to better
and profits if you could easily quote implement your trading ideas with an
on more trading venues without • Could you capture more trading industry-standard, powerful coding
additional overhead? opportunities with customized language?
quoting logic?
• Could you reduce your costs by using • Would you be able to reduce your
the same trading system for P & L, Orc Solution → Use Orc Trading for strategy development time by easily
parameter management, pricing Market Making and a customiz- reusing trading strategies developed
& hedging as well as other trading able quoting engine based on the for one market on new markets?
activities? ultra-low latency, high-performance
Orc Liquidator algorithmic trading • Would you be more successful if
• Would productivity be improved if you platform. your focus was developing trading
could automate your quoting allowing logic rather than worrying about
traders to quote on more markets the trading infrastructure?
simultaneously?
Orc Solution → Orc Trading for Market
Orc Solution → Use Orc Trading for Making’s Java-based development
Market Making and a scalable environment provides a powerful
market-making engine with and flexible language for trading
connectivity to over 100 trading strategy development.
venues around the world.
More information on
www.orcsoftware.com
“ One consequence of all the changes swirling through the options market
is clear. As trading velocities continue to exhibit exponential growth, the ability to
manage the complexity of trading, data requirements and risk parameters will
be beyond mere mortals. Powerful systems that can manage the complexity of
the evolving marketplace will be a necessity, and the most successful firms will
invest considerable resources in technologies that can provide them with the
”
edge to beat out the competition.
Trying to make change: Market makers and the evolving options market
Andy Nybo, Principal, Head of Derivatives, TABB Group

3. ORC TRADING FOR MARKET MAKING
SOLUTION FEATURES
HIGH-PERFORMANCE COMPLETE MASS QUOTING SOPHISTICATED VOLATILITY &
FUNCTIONALITY PRICING MANAGEMENT
• Ultra-low latency quoting engine
- Server-based engine for fast, scalable • Automated quoting for higher productivity • Pre-defined volatility models
performance with reduced costs
- Configurable volatility models for
- Co-location capabilities at exchanges • Multiple quote width determinants accurate, reliable pricing based on
for lowest possible latency - Option premium points individual requirements
- Able to quote multiple instruments on - Volatility - Swim/skew functionality allows models
multiple markets simultaneously to move with changing market conditions
- Interest Rate
• High-speed market gateways • Volatility Model API
- Offsets
- Low-latency market gateways to the - Implement proprietary volatility models
- Sliding scale based on option delta
major derivatives exchanges directly into Orc Trading for Market Making
or premium
- Connectivity to over 100 exchanges - Leverage Orc Trading’s rich volatility
• Adjust quotes manually or automatically
worldwide including cash exchanges management interface to control the
for hedging • Make markets responsively based on proprietary volatility model
quote requests
• Accurate Pricing
- Built-in pricing models for accurate
quoting and hedging
- Price exotic or standard products reliably
- Pricing Model API for leveraging
proprietary pricing models
1 Trade futures, options,
and cash products on
1 multiple exchanges
2 Monitor and adjust
trading strategies
2 3 Post-trade risk and
position information to
support trading
4 View executed trades
5 Manage and adjust
volatility
3 4
6 Design your own trading
strategies in Java
6
5

4. ORC TRADING FOR MARKET MAKING
SUCCESS STORIES
CEO AT A HEDGE FUND HEAD TRADER AT OPTIONS MARKET MAKING FIRM
The CEO of a hedge fund wanted to be able to quote on The head trader of a market making firm on the index
multiple exchanges without increasing staff resources. products at CBOE (Chicago Board Options Exchanges) had
Using Orc Trading for Market Making, his firm was able to limited ability to expand their quoting business because of a
connect to multiple exchanges from one system and was slow solution that was not easily scalable. Using Orc Trading
able to deploy the firm’s resources towards “smarter” trad- for Market Making the head trader was able to increase his
ing opportunities. This helped the firm to reduce costs while number of quotes by 10 times allowing expansion into new
expanding their business. markets to grow their business.
ORC TRADING More information on
TAKE ADVANTAGE www.orcsoftware.com
Take Advantage Orc is a leading global provider of technology for advanced derivatives
trading and connectivity. Customers include leading banks,
Orc Trading is used by leading financial firms worldwide for enhanced trading and market-making firms, exchanges, brokerage houses,
trading, pricing and risk management on electronically traded derivatives. institutional investors, hedge funds and software vendors.
Orc Trading provides the competitive edge to trade from a single platform,
on any listed instrument, across all asset classes, on 100+ markets. sales@orcsoftware.com
Orc Trading comprises market leading applications including among www.orcsoftware.com
others Orc Trading for Algorithmic Trading, Orc Trading for Arbitrage,
Orc Trading for Market Making, Orc Trading for Risk Management and Amsterdam, Chicago, Frankfurt, Hong Kong, London, Milan,
Orc Trading for Volatility Trading. Moscow, New York, Paris, Stockholm, Sydney, Vienna