OneChronos uses AI powered auctions to find the mutually beneficial order matching opportunities missed by conventional trading paradigms. We're starting with US equities.
OneChronos uses short duration combinatorial call auctions to match buyers and sellers in a pure agency capacity.
Combinatorial auctions let market participants express contingencies between and constraints on how their orders are matched. They're used in other domains to improve market efficiency and broaden participation¹. We're bringing them to US equities.
We're building the first truly universal trading venue. OneChronos is deploying points of presence (POPs) for order entry and market data distribution around the globe. Our unique order entry paradigm and distributed systems IP uses high precision timestamping to render competition over proximity, network routes, and market data handling moot. Aside from ending a costly arms race, our distributed approach enables combinatorial trading across geographies and asset classes⁴.
Eliminate the market event loop by running snippets of code inside our venue as part of the matching process. Achieve deterministic outcomes without costly low latency infrastructure. Build sophisticated strategies in minutes instead of months. Reduce implementation risks.
Core functionality without workflow changes.
Flat per-share Match Fees⁵.
Trade electronically in ways that aren't possible today⁶.
Built by practitioners, for practitioners.
Our paradigm can work for every market participant, asset class, and geography.
Embrace a new standard - not a new venue.
¹ Combinatorial auctions are a type of Smart Market. They find broad use in other industries, but pose technical challenges for the speed and scale of financial markets like US equities. OneChronos utilizes unique intellectual property to mitigate those challenges.
² Combinatorial matching increases the opportunity for interaction by allowing market participants to express their true intent for trades involving multiple units of one or more securities, subject to contingencies and/or constraints. Used in conjunction with high precision timestamping, combinatorial matching creates a more level playing field for market participants, regardless of the complexity of their trading strategies or systems for market access. This can lead to outcomes that reduce market impact, improve TCA metrics, and increase liquidity, but combinatorial matching does not guarantee that such opportunities will exist. All Subscribers are still subject to market forces such as illiquidity and price movement.
³ Combinatorial constraints via Computational Orders eliminate legging risk by ensuring that transactions involving one or more units of one or more securities happen in an atomic ("all-or-none") fashion. Transaction atomicity can be used to limit information leakage by ensuring that all legs of a transaction are firm before individual legs are reported. The extent to which information leakage is reduced depends entirely on market conditions and the Subscriber's broader market activity.
⁴ The graphic depicted in the section titled "Globally Distributed Trading" illustrates how OneChronos uses datacenter timestamping to synchronize data across multiple points of presence (POPs). These latencies are and the geographies depicted are purely illustrative and not necessarily representative of true inter-POP latencies or geographies where OneChronos maintains POPs. Network conditions and service interruptions may at times impact the ability of OneChronos to accept orders and disseminate data from all POPs. Our Subscriber Agreement details how we handle service interruptions.
POP local timestamping of market data and order entry used in conjunction with Computational Orders greatly reduces the incentives for utilizing low latency message handling and data processing infrastructure when interacting with OneChronos. This benefit does not extend to interactions with other trading venues.
⁵ Match Fees are assessed on a flat, per-share basis. OneChronos does not charge Subscribers for connectivity or real-time data. Although OneChronos only charges Match Fees, Subscribers may be subject to third party fees such as data center hosting, and and pass-through expenses such as SEC Section 31 fees.
⁶ OneChronos offers Computational Orders™ for combinatorial order matching. Computational Orders enable types of transactions that are not possible on multi-dealer limit order book/auction based trading venues. As an example, OneChronos Subscribers can express constraints on multiple legs (symbols) within a single firm, electronic order (e.g. sell A and use the proceeds to buy at least N shares of B). Such trades are not possible on other firm, multi-dealer equity trading platforms.