Quant Insider Market Making Challenge(UAT Live Edition)

Market making is at the core of modern financial markets—it provides liquidity, narrows bid–ask spreads, and enables continuous price discovery. This competition simulates a live market-making environment using the Nubra Trading API (UAT environment). Participants will build, test, and run a Python-based strategy that reacts to real-time order-book data, makes dynamic quoting decisions, and tracks PnL and inventory performance. Guidelines: Technical Requirement: Participants will design and implement a Python-based market-making algorithm that connects to Nubra’s UAT environment. API Usage: Participants will use Nubra’s Python SDK (v0.3.5) to access UAT market data feeds. Key APIs include Authentication, Get Instruments, Market Quotes, and Realtime Market Data WebSocket. Deliverables: Submissions must include a Python notebook/script, CSV logs with quotes and PnL data, and visualization plots comparing adaptive vs baseline strategies. Reports: Reports explaining logic and key findings are encouraged. Rules: Strategy Objective: The algorithm must quote bid and ask prices dynamically around mid-price, adapt to order-book imbalance and inventory, and simulate fills. Risk Management: Participants must manage risk by keeping their net position (inventory) near zero. Cap inventory and log every event with timestamps. Data Handling: Handle prices in paise and reconnect sockets gracefully. Mechanics: Dynamic spread adjustment and skew control are core to profitability and risk management. Timeline: 15 December: Online Webinar for Onboarding (Link will be updated accordingly) 23 December: Event Day Evaluation Criteria: Judging will be based on a total of 100 points (plus bonus): Profitability (40 pts): Effectiveness of the PnL generation. Risk Control (20 pts): Ability to manage inventory and exposure. Responsiveness (20 pts): Speed of reaction to market data. Stability (10 pts): Robustness of the code. Presentation Quality (10 pts): Clarity of logs and reports. Bonus (10 pts): Awarded for creative visualization.