TraderTools Unveils Component-Based Offering of PriceOn™ AI Market Making Toolkit

TraderTools, a financial technology solutions provider, has announced that its AI algorithmic market making toolkit, PriceOn™ - most recently adopted by leading Retail FX and CFDs broker ATFX - is now available in three separate components that can be licensed individually, or as an integrated software suite. The company says this is in response to growing market demand

 

The three components are:
 

1) MarketRecon: This component dynamically assesses the customer base, classifying traders into categories and assigning toxicity scores to detect potentially problematic trading patterns.

 

▪️ Classify traders into A-Book or B-Book categories by analyzing their performance to distinguish between skill and luck and identify repeatable patterns.

▪️ Assign a toxicity score to each customer and type of trade flow to detect scalpers and those exploiting retail trading software.

▪️ Utilize pattern analysis to identify trading robots and automated systems.

▪️ Simulate various risk settings to optimize risk/reward outcomes for inventory management, position limits, and hedging strategies.

 

2) MarketSentry: Designed to guard against toxic flow, this component segments trades and implements safeguards at various levels to prevent predatory behaviours:

 

▪️ Segment trades into distinct groups.

▪️ Implement safeguards for each group to prevent trades executed at off-market prices or other predatory behaviours.

▪️ Apply safeguards at the instrument, client, and trade size levels.

Calibrate liquidity band tolerance levels, last look policies, and position-based skews.

 

3) MarketMaker: This component focuses on risk management and hedging, offering tools for developing electronic liquidity streams and optimising trade yield.

 

▪️ Develop unique electronic liquidity streams using algorithmic pricing, inventory control, and risk management tools.

▪️ Minimize hedging costs through passive hedging, eliminating spread costs on hedging, and capturing additional spreads on the hedges.

▪️ Increase trade yield by optimizing the timing of hedges for each type of flow and implementing strategies to maximize and capture earned spreads.

▪️ Leverage toxic flow to advantageously price flow that was previously considered unprofitable.

 

TraderTools describes PriceOn™ as a solution aimed at regional banks and brokers, offering flexible, pay-as-you-use arrangements. The company states that the toolkit "supports a comprehensive market-making operation, offering a wide range of features that maximize spread earnings and strategically enhance competitiveness."

 

The company emphasises that no programming or quantitative skills are required for dealers to use the system at their trading desks.

 

TraderTools Inc. is a provider of financial technology solutions, with a focus on FX trading and market-making. The company states its commitment to "excellence and innovation," aiming to help financial institutions optimise their FX operations and maintain a competitive edge in today’s dynamic marke