What Features do you want to see in the next big Exchange?

[izz]

Hi guys,

So I have been noticing a few new cryto currency exchanges pop up (even ones without old world conversions, ie BTC/LTC/PPC/TRC/NMC/YAC/etc only. There are alot of posts ranting on about how we hate exchanges or the things they do wrong...

What features would you want/expect to see in them?

Here is my list:

Fees:
- Flat Fee system: ie same rate for all currency trading, makes calculating profits alot easier

Features:
- Ability to see all currencies in one screen, and see if they are trending up or down.
- Set up some auto Buy/Sell Orders based on Moving Averages
- Set up simple Buy/Sell Orders based on fixed values (Ie Buy at x price sell at y price) automatically (with stop loss)
- Profit/Loss Calculator based on your trade history/ open orders/ user input

Bonus:
- Identifies Arbitrage possibilities between other exchanges, automatically and notifies you of them.

TL;DR What about you guys, what do you want to see, or what do you like in exchanges that you are currently using?







 

[erk]

Marked Making instead of just matching up buyers and sellers.

Most foreign exchange trading firms are market makers, and it seems to be totally lacking in the bitcoin world.

[coinedBit]

Ideally, cryptocoin-exchanges should be totally decentralized and distributed, too - until that's the case, they cannot be taken seriously:

well, I don't know - to me, the whole approach seems conceptually broken: there's dedicated websites and services acting in a centralized fashion to serve as securities exchanges for options, futures etc - all backed by bitcoin, which is decentralized in nature. And according to the news coverage during the last weeks, it's obvious that government agencies like SEC are going to carefully look at such exchanges, because they are the "single-point-of-failure", and easy to address/attack.

So what's really needed is someone hacking bitcoin to come up with a decentralized securities exchange, where companies may issue shares, market makers buy/sell securities etc.

It is only natural for stock exchanges, options and futures contracts to evolve on top of a currency, but the way people are doing this currently, it's totally half-assed, because all the benefits of distributed cryptocurrencies are completely disregarded by coming up with a website that acts as a single point of failure, and which is easy to shut down.

A real exchange would ideally also be based on cryptocurrencies and totally distributed, and be running 24/7/365

[Igotcha]

Right, that's one of the biggest problems I see in todays exchanges.

Marked Making instead of just matching up buyers and sellers.

Most foreign exchange trading firms are market makers, and it seems to be totally lacking in the bitcoin world.

[izz]

Marked Making instead of just matching up buyers and sellers.

Most foreign exchange trading firms are market makers, and it seems to be totally lacking in the bitcoin world.

Hi, im not an expert on the market making field, so forgive me, but i agree that anything that would increase liquidity and volatility would be great additions.

But i'm not sure im following on how it would be implemented on a bitcoin exchange, because
- if a maket maker needs to be able to offer trades 24/7 wouldnt they need to have potentially an infinite amount of money in each cryto currency?
- unlike old world exchanges, where money can be digitial and arranged through lines of credit. The properties of cryto currencies, means the exchange must have large amounts of cold coins in each currency to allows this. Then when/if one of the currency reserve is depleated it wont  be able to be a market maker for that currency.


Although if the exchange then automatically added in these market making orders, couldnt they then also manipulate the market...
Or is that the point?

Technically couldn't a existing market maker make use any one of the exchanges to execute their orders, and achieve the same thing? I mean is it really the role of the exchange to do this?

What do you think?

[coinedBit]

absolutely not, in fact, that's one of the shortcomings of existing exchanges: they are also acting as "market makers", in a very limited fashion - they should be opening up to allow external entities to act as market makers.

if you are able to trade multiple markets at once, you don't need access to lots of cash - you just trade the markets and hedge positions against each other.

[izz]

absolutely not, in fact, that's one of the shortcomings of existing exchanges: they are also acting as "market makers", in a very limited fashion - they should be opening up to allow external entities to act as market makers.

if you are able to trade multiple markets at once, you don't need access to lots of cash - you just trade the markets and hedge positions against each other.

Hi, which part are you referring to?

What are you saying an exchange should do to allow this? like offer very low fee's for market maker users or something?

Just so were on the same page, your suggesting the exchange itself shouldnt attempt to be the market maker, but offer their platform to allow others to do so. Is that right?

[erk]

absolutely not, in fact, that's one of the shortcomings of existing exchanges: they are also acting as "market makers", in a very limited fashion - they should be opening up to allow external entities to act as market makers.

if you are able to trade multiple markets at once, you don't need access to lots of cash - you just trade the markets and hedge positions against each other.

They most certainly are not. Market making means the exchange digs into it's own reserves to fulfill an order  if they can't match a buyer and seller at the time, like the forex boys do, tell me one BTC exchange that does that?

In other words the Market Maker sells to and buys from the clients, it doesn't just do match ups.

http://en.wikipedia.org/wiki/Market_maker

[coinedBit]

I was referring to RL trading obviously, at the moment exchanges are trying to partially fulfill that role, with little success...

[whydifficult]

In addition to a flat fee systems, fees need to get a lot lower imo.

[izz]

Yeh I agree, although I think BTC-e is fair, but mtgox/vircurex could do with a drop in the price I think.

[coinedBit]

at >= $100 USD bitFunder's 5 BTC is also pretty excessive for people wanting to start something new...

[btceic]

• World Class Professionalism
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• True Market Making
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• Open Source
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• Separation of "ALL" Concerns, ex: separate the trading engine from the UI!!
• On par or better then NYSE, NASDAQ, AMEX, etc
• Distributed connection nodes via DNS etc. ala google etc.
• Sub millisecond connection times

[TheButterZone]

P2P, no more central points of failure/attack by private or government actors.

Unfortunately I think all the P2P exchanges are stalled at the moment, or have terribad interfaces that make you go,

[legitnick]

A chatbox, multiple alt currencies, and last NO withdrawal fees