Gemini launches daily bitcoin auctions to provide better price discovery

in #bitcoin8 years ago (edited)

Gemini Trust Company announced on Wednesday that it has launched "the first-ever daily bitcoin Auction."Currently, only BTC/USD trading pair is supported but the exchange plans to add ETH/USD and ETH/BTC trading pairs “in the coming weeks,” according to the announcement

he world's largest stock exchange, the New York Stock Exchange (NYSE) has an auction market. The NYSE Acra is a stock and options exchange previously called Archipelago Exchange or ArcaEx. It merged with NYSE Group in a reverse takeover in 2006 and was renamed NYSE Arca. 

The second largest stock exchange, NASDAQ, also facilitates auction orders. Its 'Closing Cross' is thefirst successful electronic auction in the U.S. It offers a highly transparent, accurate and orderly market close for NASDAQ securities.  

The cross sets opening and closing prices, similar to Gemini and the NYSE, the Closing Cross is initiated at 4:00 pm ET. 

The auction market is also different from the over-the-counter (OTC) market. Buyers and sellers negotiate the terms of their trades privately so OTC investors usually have limited knowledge of trades being negotiated elsewhere in the market. 

Five key benefits of auctions are listed in the Gemini announcement. “Greater price discovery” is at the top of the list. “Lower fees” is another benefit since auction trades benefit from Gemini's “liquidity-making fee discounts.” 

Auction orders placed between 5:00 p.m. ET the prior day and 4:00 p.m ET on the day of the Auction are filled at the final auction price at 4:00 p.m. ET on the Auction day. “The final auction price of each Auction is determined by finding the price at which the greatest aggregate buy demand and aggregate sell demand from all participating orders can be filled,” the exchange announced. 

Gemini Trust Company, LLC is a New York state limited liability trust company operating under New York Banking Law, regulated by the New York State Department of Financial Services (NYSDFS). 

Since launch, Gemini has been growing in trading volume. As of September 22, 2016, BraveNewCoin'sBTC/USD  24 hour marketplaces shows that Gemini is the largest bitcoin to dollar exchange by volume with a market share of 13.09 percent. The previously hacked Bitfinex sits in at third with 12.79 percent market share. 

source image: 1

source information: http://bravenewcoin.com/news/gemini-launches-daily-bitcoin-auctions-to-provide-better-price-discovery/

 

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