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Title: crossing network Post by: CliffordM on December 14, 2012, 08:12:45 PM Has anyone thought of offering an anonymous crossing network, for say USD/BTC ?
It could be done once a week, and would facilitate people trying to trade large size without spooking the real-time exchange. Only the crossing price and size traded would be announced leaving other participants hidden. They are very popular in established markets, and provide significant liquidity without boosting volatility. Title: Re: crossing network Post by: MPOE-PR on December 14, 2012, 10:09:38 PM Has anyone thought of offering an anonymous crossing network, for say USD/BTC ? It could be done once a week, and would facilitate people trying to trade large size without spooking the real-time exchange. Only the crossing price and size traded would be announced leaving other participants hidden. They are very popular in established markets, and provide significant liquidity without boosting volatility. There's maybe five people in BTC who'd have the credibility to start one. So no, it wouldn't be done in a week. It'd be done as soon as one of them sees it as worthwhile. (Which won't happen because OTC already exists and already does this, and on this note see here (https://bitcointalk.org/index.php?topic=124441.0).) Title: Re: crossing network Post by: Dalkore on December 14, 2012, 10:35:55 PM Has anyone thought of offering an anonymous crossing network, for say USD/BTC ? It could be done once a week, and would facilitate people trying to trade large size without spooking the real-time exchange. Only the crossing price and size traded would be announced leaving other participants hidden. They are very popular in established markets, and provide significant liquidity without boosting volatility. I believe they call these "Dark Pools". Depending on the position I would take, it could be beneficial to me but having the exchange reflect an accurate current price may be more beneficial to everyone involved? Thoughts? Title: Re: crossing network Post by: CliffordM on December 15, 2012, 01:30:41 PM A crossing-network is quite different from an OTC arrangement, and both adds liquidity and decreases volatility to an existing exchange mechanism.
Gold and Silver have daily fixings (which are essentially daily crosses) and many of the larger players prefer to trade either in the cross or at the fixing price, which is regarded as a better indicator of value than an exchange print. Regarding market transparency, the crossing price and volume are printed, but the underlying orders of which there can be many remain hidden -- this being an important aspect of the mechanism as it encourages more potential liquidity. The most obvious candidate to run a cross would be MtGox as they have the ability to hold USD and BTC against orders. Quite typically a large amount of the MtGox book would be swept away into the cross , and then back onto the MtGox book afterwards. |