Optimal Make-Take Fees in a Multi Market-Maker Environment

Following the recent literature on make-take fees policies, we consider an exchange wishing to set a suitable contract with several market makers in order improve trading quality its platform. To do so, use principal-agent approach, where agents (the makers) optimize their quotes Nash equilibrium fashion, providing best response proposed by principal exchange). This aims at attracting liquidity is because wealth of depends arrival orders, which driven spread makers. We compute optimal quasi-explicit form and also derive policies for Several new phenomena appears this multi market-maker setting. In particular show that it not necessarily have large number presence contracting scheme.