Quote Driven Market

Quote Driven Market

The Quote-Driven Market (QDM) is a system in the energy market in which transactions are based on quotes made by sellers. It works on the basis of "quotes," which are simply offers to sell (or purchase) energy at certain prices, quantities, and terms. The QDM is the key component for managing and facilitating these transactions.

In a Quote-Driven Market scenario, source S offers 1000 kWh for sale within a certain time period. The procedure begins with S's TEUA delivering an EiCreateQuotePayload to the LMA, which includes the quote's properties (such as quantity, price, and tradeability). The LMA sends this payload to the Quote-Driven Market (QDM), which assigns a marketQuoteId, broadcasts the quote to subscribers, and keeps records.

In a Quote-Driven Market scenario, source S offers 1000 kWh for sale within a certain time period. The procedure begins with S's TEUA delivering an EiCreateQuotePayload to the LMA, which includes the quote's properties (such as quantity, price, and tradeability). The LMA sends this payload to the Quote-Driven Market (QDM), which assigns a marketQuoteId, broadcasts the quote to subscribers, and keeps records.

Buyers, represented by TEUAs, subscribe to the ticker to get quotes. When a customer (for example, Andrew) decides to buy, they send an EiAcceptQuotePayload to request a certain quantity (for example, 10 pieces). The QDM depletes the quote's remaining quantity, changes the ticker, and initiates transactions by sending EiCreateTransaction payloads to the relevant parties. This cycle is repeated as more purchasers (e.g., Vanessa) lift further volumes, decreasing.

Key functionality of the Quote Driven Market

1. Quote Creation: sellers can submit a quote through their TEUAs to the Local Market Agent (LMA), which forwards them to the QDM. The QDM then assigns unique IDs to these quotes.
2. Quote Broadcasting: the QDM broadcasts the quotes to all subscribed participants per the ticker.
3. Transaction Initiation: buyers when purchasing submit an EiAcceptedQuotePayload to the QDM with the specific quantity the want to buy. The QDM further updates the quote's remaining quantity, showcasing the portion sold, and broadcasts the updated quote via the ticker.
4. Transaction Completion: the QDM generates the EiCreateTransaction payloads for both the sellers and buyers in order to detail the transaction's terms.
5. Market Synchronization: the QDM ensures all subscribed participants are updated on the latest market status.

Ticker: What is it and its purpose?

In this sense, a ticker is a mechanism or system that sends real-time updates to all subscribed parties regarding the market's position, such as available quotes or transactions.

Ticker's purpose:

• Market Awareness: Keeps all players (buyers, sellers, or their respective TEUAs) up to date on the current trade quotes.
• Transparency ensures that all subscribers have equal access to market information, which is critical for a fair and effective market.
• Efficiency: Allows potential purchasers to swiftly locate chances to purchase energy (or other resources) by delivering real-time updates on quantities, prices, and other information.
• Synchronization: Helps to prevent market inconsistencies by ensuring that everyone operates on the same, up-to-date data.