Winklevoss Twins’ Gemini exchange rolls out block trading
The company made the announcement on Monday, with trading commencing before the end of this week.
The new feature will allow customers to make block trades that only appear in the firm’s order books upon completion.
In a blog post on its website, Gemini explains that trading will go live at 9:30 a.m. ET on Thursday.
Smaller traders won’t be able to access the feature, however.
A minimum threshold of 100 Ether or 10 Bitcoin applies for block trades.
Creating space for big-money traders
Gemini is positioning the bulk trading addition as a way of creating “an additional mechanism to source liquidity when trading in greater size.”
By including block trading on their platform, large traders such as hedge funds can buy and sell without immediately affecting prices.
Previously, alternatives for buying quantities without impacting market values have been to buy “over-the-counter.”
Or relied on splitting trades up into small chunks to minimize the impact
Those who place orders – market makers – specify the minimum quantity, price limits, or whether the trade is a buy or sell.
Called an “indication of interest,” this information is broadcast to all market makers simultaneously.
In the blog post, the exchange explains:
“In accordance with our commitment to an equitable, transparent, and rules-based marketplace, block orders will be electronically broadcast to participating market makers simultaneously, ensuring best execution and price discovery for those participating in the program.”
Gemini, founded by cryptocurrency investors Tyler and Cameron Winklevoss, hinted last month that the exchange might add additional cryptocurrencies trading in the future.
Potential selections for additional digital currencies include Litecoin and Bitcoin Cash, according to reports.