Give up market makers — the head of BitMEX

Cryptocurrency exchanges that earn money through prop trading should stop using internal market makers. This was stated by Stefan Lutz, CEO of the BitMEX exchange.

Why Exchanges Should Abandon Market Makers

The CEO of BitMEX said that there is no need for this. Critical mass has been gained. He believes that large platforms will have enough high-frequency traders, as well as user trading.

Before that, the media found out that the site Crypto.com there is a department dealing with prop trading. At the same time, employees are required to conceal their activities. Lutz openly announced that the company additionally employs internal traders. At the same time, they conclude a contract with a separate legal entity — Arrakis Capital. At one time, it was one of the largest internal market makers for the Lutz crypto exchange.

To date, the company is exclusively treasury. The CEO added that she has few employees. At the same time, the platform technically and organizationally does not relate to the exchange in any way. 

He added that Arrakis is engaged in converting the commission into fiat, hedges the impact of the exchange on funds that are stored as stocks, and also creates markets for the exchange's internal coin.

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