Launch HN: OneChronos (YC S16) – Combinatorial auctions market for US equities
Congrats on the launch! What are the main benefits of this approach compared to creating additional combo (multi-leg) products on existing exchanges?<p>There are already a lot of mechanisms in traditional markets that deal with revealing or concealing true demand (e.g. block trades, icebergs, etc). Market-maker protections can allow outstanding orders to be cancelled if you get filled up to a predetermined risk setting. Most exchanges don&#x27;t want to add additional complexity and more order types unless there&#x27;s demand for it, which is presumably how market structure evolved to where it is today.<p>Combinatorial auctions are very interesting, but what&#x27;s to stop exchanges from (1) creating more common bundles that people want to trade; (2) matching them with price-time priority so everyone gets a fair price? Wouldn’t the auction model just create wider or locked&#x2F;crossed markets?