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Accurately Predict the Timing and Direction of the Next Quote

Quote Fuse accurately forecasts stability or staleness of the quote prices, showing when the NBBO is going to change. The probabilities of a fast quote are updated for every change of the NBBO (price or size) resulting in over 500 million signals in a typical day. It delivers a new prediction of bid and offer price stability on every real-time quote event. Specifically, the prediction is a pair of probability values – one for the bid and one for the offer. Each value is the probability that the price will change in less than 50 milliseconds. You select the right probability thresholds upon which to act. 

While Quote Fuse predicts the timing of the NBBO change, Quote Vector predicts the direction the quote will move. Letting you know whether prices are rising or falling. This powerful predictor has enormous value for a broad range of trading strategies. Signum’s accurate predictions of next quote price direction – Quote Vector – and the time until the next quote price change – Quote Fuse – allows execution algorithms to consistently reap handsome returns.  

 Signum’s Liquidity Lamp signal detects and tracks the presence of reserve orders (aka iceberg orders) resting on U.S. exchanges. Iceberg orders have been shown to be a great proxy for understanding institutional investor sentiment and highly predictive of future price movements.  

Use Cases

  1. Execution Algos

    Predictive AI-powered trading signals can be used with execution algorithms to help reduce slippage, improve order-routing decisions, and minimize the price impact of large orders. Prediction can fine-tune algos such as volume-weighted average price (VWAP), liquidity-seeking strategies, and proprietary order types. 

    Click here to find out more about how Signum helps firms develop and evolve their execution strategies.

  2. Proprietary Order Types

    Exchanges and alternative trading systems (ATS) can incorporate AI signals to create venue-supplied algorithms that enhance execution for their customers. These order types help guard against front-running and minimize price impact when fulfilling large orders—a powerful selling point to attract institutional investors.

     

  3. Market Making

    Tighten your market making quotes and improve your queue position. Signum’s Quote Vector signal provides accurate predictions of the direction of the next quote price movement with every market data tick.

    Click here to find out more about market making strategies with Signum.

Signum Real-Time Signals:

Knowing whether a price is stable or about to change is powerful. Optimize your fills and squelch your risk with Quote Fuse’s real-time predictions of quote price stability.

Know if the next price will be better or worse – on every tick. Quote Vector delivers this prescient power in microseconds. Yes, the game has officially changed.

Hidden orders have a visible impact on market dynamics. Liquidity Lamp illuminates these hidden forces on pricing and execution. Enlighten your strategies with Signum.

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