Is there a high level write-up on TEC? I can see the spec here TEC with continuous time matching
I do run arb and MM bots. MM on DEX will use the biggest liquidity pools otherwise he will get arbitraged by other MM. so if MM_1 quotes eg 99/100 and is by default slower then another MM_2, and MM_2 moves his quotes to 101/103, then MM_1’s quotes are stale. I can’t see the utility of a delay in MM code under any condition. “Arbitrage” is not only an activity, it refers to the fact that if a MM provide quotes the MM better be accurate and not introduce possible arbitrage. The arbitragreurs profit is the market-makers loss. The MM can be protect by quoting much wider spreads. He will be outcompeted by other MM who can offer lower spreads. In any case an MM subjecting himself to delays will lose against those who don’t.
IEX is quite specific case which also underlies the very heterognous market structure of US equity markets. I will read more about it.
Maker makers want speed and high throughput. I am very glad 0x introduced the MM program so there is this conversation. Any exchange that wants to be successful has to cater to its users, and MM/HFT are the power users driving volume of an exchange.