Global Exchanges

Global exchanges have long provided testing services, though in most cases the technology and access they provide is limited and directed to conformance testing.

Many members now look to Exchanges for help accessing better testing services.

Quantum’s Exchange solution provides a scalable, proprietary testing-as-a-service platform that can speed new member onboarding readiness and improve existing member readiness for new feature and periodic conformance. 

Better member testing, particularly for smaller members, equals better overall market stability and more attractive market liquidity. It also allows exchanges to make certain testing activities mandatory and measurable for the largest market participants.

Smaller exchange members often lack resources for extensive testing solutions, yet without strong testing they risk materially disrupt markets via algorithmic or system errors.

Frustrated members want but rarely receive highly realistic, on-demand, deterministic, scalable testing services.

Quantum can complement an exchanges final conformance testing by ensuring that members are more prepared and have a better experience onboarding.  Quantum works with client exchanges to provide a cost-effective, on-demand testing solution, allowing clients to focus attention on trading strategies and liquidity in that market.  Quantum can even help exchanges to monetize its services in new, creative ways.

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Quantum Use Cases for Global Exchanges

  • To put a replication of their exchange platform on every desktop of current and future members via Quantum

    Compelling Rationale

    • Stronger member preparedness and reduced timelines for onboarding/certification

    • Thorough testing of trading algorithms by members prior to live trading

    • Mandatory testing of trading obligations by members prior to going live

    • Faster feedback from members on new product/platform releases

    • New trading flow by making exchange-focused strategy development faster, easier, more realistic, and cheaper for traders

    • Better monetization of exchange data assets (less commoditization)

    • To put a replication of their exchange platform on every desktop of current and future members via Quantum

    What Exchange Members are saying:

    • Want 24/7 market testing and on-demand

    • Want Realistic and individual/deterministic testing environments to be able to develop and test new models and model attributes quickly

    • Want to understand how their algos will perform in a number of market scenarios (e.g. rising/falling markets, gapping or distressed markets)

    • Want to understand the market impact of their trading strategies

    • Want to test strategies across multiple liquidity sources or in the case of the USA, under RegNMS

    • Want to test latencies to multiple liquidity sources

    • Want to stress their end-to-end trading infrastructure at pace

    Exchange Constraints:

    • Exchanges often only offer limited testing times that are suboptimal to local and global testing needs of members

    • Exchanges typically have not offered deterministic testing environments for members

    • Exchanges only offer their own venue(s) within a testing service, rather than all global exchanges on a single platform – that’s how members trade & like to test

    • Trading firms want to provide one point of integration to their trading platforms not multiple points for every individual venue

  • Expedited Member Onboarding & Testing

    Compelling Rationale

    • Thorough new member preparedness and 24\7 access reduces time for Exchange onboarding and certification

    • Making model development easier will attract new trading flow by making Members’ strategy development faster, easier and cheaper

    • Desire for expectations of Regulators for Exchanges and Members to be more data driven and empirical

    Key Quantum Functionality:

    • Cloud-based instances of Quantum platform on-demand for new members

    • Platform can be used by Venue developers alongside UAT to stress test key changes

    • Through our partnership with Google, access to a wide array of Google Analytics

    Use Casesdelivered by Quantum:

    • 24/7 testing of functional changes by new members to ensure that internal systems are ready to trade on a new venue.

    • 24/7 testing of functional changes by members due to updates/new functionality on the exchange’s platform, prior to exchange’s legal conformance testing

    • 360° End2end testing for new member trading components to ensure both exchange conformance and show readiness for member’s clients (integration testing)

    • Stress testing for new members based on volumes and requirements of new exchange

    • Operational scenario testing prior to launch with new exchange

    • Security testing prior to exchange conformance

    • Team executive signoff

  • Expedited Member Testing

    Compelling Rationale

    • Thorough member preparedness and 24\7 access reduces time and risk for Exchange certification

    • Faster feedback from exchange members on new product changes

    • Helping members to lower the risk of catastrophic trading errors by members and fewer regulatory fines

    • Desire for expectations of Regulators for Exchanges and Members to be more data driven and empirical

    Key Quantum Functionality:

    • Cloud-based instances of Quantum platform on-demand for existing members

    • Ability to upgrade to proprietary Quantum installations as desired by members

    • Platform can be used by Venue developers alongside UAT to stress test key changes

    • Through our partnership with Google, access to a wide array of Google Analytics

    • Quantum provides members with the ability to conduct and fully document a broad and ever-growing range of testing and results

    • The benefits from independent, sophisticated testing and analytics

    Use Casesdelivered by Quantum:

    • 24/7 testing of functional changes by members due to updates/new functionality on the exchange’s platform, prior to exchange’s legal conformance testing

    • 360° End2end testing for member trading components to ensure both exchange conformance and show readiness for member’s clients (integration testing)

    • Stress testing for members based on exchange requirements

    • Operational scenario testing prior to launch with new exchange functionality

    • Security testing prior to exchange conformance test

    • Team executive signoff