Is there any way to track the volume of trades currently being processed by your exchange? It would be good to be able to track this number in order to see at what point it becomes viable to take a serious look into trading on your platform.
Launch HN: OneChronos (YC S16) – Combinatorial auctions market for US equities
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Re: Launch HN: OneChronos (YC S16) – Combinatorial auctions market for US equities
#52This is part of the reason I come to HN. A detailed post on a problem (and sometime solution) I am unaware of. A newbie question. I understand how a pair tickets to say the superbowl would be more valuable than a single ticket, people want to go with their friend. Is there a practical example for equities? I will buy 100 shares $FB at $250 only if I can also get 50 shares of $SNAP at $35 at the sametime? If I can't g…
Great question! Complements in capital markets typically aren't as strong as other markets like event tickets. On the complements side, hedges are a good example. Market makers like banks are willing to quote much larger sizes for hedged transactions, e.g., an institution that wants to buy a large block of equity in one company while selling others with similar qualities as "factor hedges." The net notional changing…
Do you envision scenarios where this new expressiveness is used in strategic but not market efficient ways? For instance, in the SNAP example, presumably the correlate to price improvement when purchasing as a substitutable hedge is a price premium when purchasing a specific equity, as market participants can deduce -- in a way that they previously could not -- that there's something inherent to SNAP that one (or the market) values. I don't know if it's possible under the mechanics of your ATS, but this seems to produce an incentive to obfuscate such a purchase of SNAP specifically, potentially in ways that detract from market efficiency. Am I off base? To put it more generally I wonder whether this higher dimensionality might not lead to more sophisticated game-theoretic posturing, rather than less.
Re: Launch HN: OneChronos (YC S16) – Combinatorial auctions market for US equities
#53Is this only effective at small scale? Many of the biggest hedge funds in the world that do high frequency make money by effectively front-running the book. If you are executing these trades across exchanges I don't see how you don't get front-run by HF firms.
This is the same problem eth et al are dealing with in crypto swaps due to Miner Extracted Value (reordering the tx in the block to favor miners extracting value by front running trades).
Re: Launch HN: OneChronos (YC S16) – Combinatorial auctions market for US equities
#54Is there any way to track the volume of trades currently being processed by your exchange? It would be good to be able to track this number in order to see at what point it becomes viable to take a serious look into trading on your platform.
We're still going through integration and test/simulated trading with initial set of users so nothing public yet. But once we cut over to real cash/equities our volume data will all be published through FINRA's site[0].
[0]: https://otctransparency.finra.org/otctransparency/AtsData
Re: Launch HN: OneChronos (YC S16) – Combinatorial auctions market for US equities
#55This seems like really deep technology. What is the one sentence describing who would use this and why though? Maybe that's in the long block of text somewhere. I work in fintech for broker dealers so I'm genuinely curious what is the use case here.
> This seems like really deep technology. That it is! > What is the one sentence describing who would use this and why though? Today's market structure costs institutional investors (and by extension households) at least a trillion dollars annually (and Smart Markets hold the potential to eliminate that loss).
> Today's market structure costs institutional investors (and by extension households) at least a trillion dollars annually (and Smart Markets hold the potential to eliminate that loss).
What is the subject and the verb for the problem you are solving and for whom? This is too vague.
Re: Launch HN: OneChronos (YC S16) – Combinatorial auctions market for US equities
#56poking around on your socials, it seems like you've been building for ~5 years, and are just now officially launching, after i guess a capital injection from yc.
since the core ip is "deep" as you say, i'm guessing it cost quite a bit to develop, unless you built out all of the components yourself, which, while possible, seems unlikely given the technical complexity of each piece (you, and whoever else is on the engineering team, seem smart but this looks like "research edge" tech along several dimensions).
so i'm curious whether you paid the development costs up front (either using your own money or FFF) or if you validated and raised in small pieces. if the latter, i'm curious how one does that for such a complex product/service.
lots of assumptions in the above - feel free to disabuse me of my ignorance.
Re: Launch HN: OneChronos (YC S16) – Combinatorial auctions market for US equities
#57How is your team organized? Is it US only or are there international/remote roles?
Re: Launch HN: OneChronos (YC S16) – Combinatorial auctions market for US equities
#58This seems like really deep technology. What is the one sentence describing who would use this and why though? Maybe that's in the long block of text somewhere. I work in fintech for broker dealers so I'm genuinely curious what is the use case here.
> This seems like really deep technology. That it is! > What is the one sentence describing who would use this and why though? Today's market structure costs institutional investors (and by extension households) at least a trillion dollars annually (and Smart Markets hold the potential to eliminate that loss).
How does this sit with other innovations such as all to all trading in OTC markets that are designed to match many buyer/sellers at, for example, a mutually beneficial mid price?
Re: Launch HN: OneChronos (YC S16) – Combinatorial auctions market for US equities
#59Gents, congrats on your launch from a friend in NYC! Have loved hearing about this despite understanding way less than you do about the markets, their problems, and your product. Glad to see you charging forward!
Re: Launch HN: OneChronos (YC S16) – Combinatorial auctions market for US equities
#60Trying to get a feel for how much liquidity you need to successfully execute on the complex expressive orders that might tie in multiple securities... Is it common that these types of orders run for many auctions, day, days or more to be fulfilled?