Congrats on the launch! What are the main benefits of this approach compared to creating additional combo (multi-leg) products on existing exchanges?
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't want to add additional complexity and more order types unless there's demand for it, which is presumably how market structure evolved to where it is today.
Combinatorial auctions are very interesting, but what'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/crossed markets?
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't want to add additional complexity and more order types unless there's demand for it, which is presumably how market structure evolved to where it is today.
Combinatorial auctions are very interesting, but what'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/crossed markets?