SLAs for Market Makers
Spark has specific Service Level Agreements (SLAs) in place for market makers to ensure liquidity and efficient trading. These SLAs include:
Uptime and Availability: Market makers must ensure their trading systems are operational and available for a specified percentage of the time of 85%+.
Order Placement: Market makers must place a minimum number of buy and sell orders within a specific time frame to maintain liquidity. The exact number of required orders depends on the trading pair and current market conditions. Typically, market makers are expected to maintain a balanced order book with a constant presence on both sides of the market.
Spread Maintenance: The spread requirements vary depending on the tier of the trading pair:
Tier 1 Pairs: These are highly liquid pairs. The spread should be maintained within 0.1%.
Tier 2 Pairs: These pairs have moderate liquidity. The spread should be maintained within 0.25%.
Tier 3 Pairs: These are less liquid pairs. The spread should be maintained within 0.35%.
Volume Requirements: Market makers need to achieve a minimum trading volume over a defined period, ensuring consistent market activity.
Quote Responsiveness: Market makers must update their quotes promptly in response to market changes, within a hundred milliseconds.
Order Placement Requirements
Market makers must place a minimum number of buy and sell orders within a specific time frame to maintain liquidity. The exact number of required orders depends on the trading pair and current market conditions. Typically, market makers are expected to maintain a balanced order book with a constant presence on both sides of the market.
Spread Maintenance Requirements
The spread requirements vary depending on the tier of the trading pair:
Tier 1 Pairs: These are highly liquid pairs. The spread should be maintained within 0.1%.
Tier 2 Pairs: These pairs have moderate liquidity. The spread should be maintained within 0.25%.
Tier 3 Pairs: These are less liquid pairs. The spread should be maintained within 0.3%.
Timeframe: Trading volumes are calculated monthly. Market makers must meet the volume thresholds within each calendar month to qualify for incentives and ensure compliance.
*These SLAs are monitored regularly, and market makers who meet or exceed these requirements are eligible for incentives, such as reduced fees and rewards in Fuel points.