Libra: Fair Order-Matching for Electronic Financial Exchanges

Understand

While historically, economists have been primarily occupied with analyzing the behaviour of the markets, electronic trading gave rise to a new class of unprecedented problems associated with market fairness, transparency and manipulation.

• These problems stem from technical shortcomings that are not accounted for in the simple conceptual models used for theoretical market analysis.
• They, thus, call for more pragmatic market design methodologies that consider the various infrastructure complexities and their potential impact on the market procedures.
• First, we formally define temporal fairness and then explain why it is very difficult for order-matching policies to ensure it in continuous markets.