Coinbase, a San Francisco, California-based digital currency exchange, has announced a new market structure for its professional trading platform, Coinbase Pro. According to the announcement, the updated market structure intended to augment liquidity, enhance price discovery and guarantee smoother cost movements. It made changes comprise a new fee structure that reportedly designed to increase liquidity, updated order maximums, new order increment sizes, the turning off of stop market orders and added market order protection points.
As part of the announcement, Coinbase Pro and Coinbase Prime which is the firm’s institutional trading platform will cease their support for stop market orders. The announcement further revealed that all stop orders must now be submitted as limit orders and include a limit price. In contrast, the market protection points that will be introduced both to Coinbase Prime and Coinbase Pro users will amount to 10 percent for all market orders. In a statement, the company explained that market orders that move the price over 10 percent will stop executing and return a partial fill.
However, apart from these changes, it also met with some uncertainty and negativity from the crypto community on social media. In that context, economist and trader Alex Krüger complained that Coinbase Pro raising fees for smaller clients by 33% while lowering fees for larger clients. The same user also further commented that in a rational world, most Coinbase users would now move to Binance. He further questioned that Coinbase’s decision to disable stop market orders, and claims that stop-limit orders sometimes fail to execute because of slippage, suggesting using far off limits on limit orders as a workaround. Krüger also acknowledged that those changes should lead to increased liquidity and trading activity.