Article
Market Making Infrastructure: From Backtesting to Live Execution
A practical look at building robust, multi-exchange market making infrastructure.
Market making systems should do more than place orders quickly. They need to balance spread capture, inventory exposure, latency, and exchange-level operational risk.
At Helios Infotech, we structure infrastructure in layers:
- Strategy layer for quoting logic and risk bounds.
- Execution layer for smart routing and resilient order handling.
- Risk layer for inventory controls, drawdown guards, and kill-switches.
- Observability layer for real-time monitoring and post-trade analytics.
Before production, each strategy should be tested with realistic slippage assumptions, fee models, and volatility regimes. Backtesting is not only performance validation; it is a reliability filter.
The goal is simple: maintain dependable liquidity while protecting downside in stressed conditions.