Do does Coinbase determine its price?

[BTCIndia]

There are exchanges working on p2p model like Btc-e, Bitstamp etc... which determine price as per demand-supply of market which is calculated every minute or so depending upon exchange. These are just first generation of exchange which do not have scope for market-makers/brokers to inject liquidity. Once Bitcoin is regulated, I'm sure they will have brokerage account just like other stock exchanges. But, coinbase is something different..its is exchange in somewhat different way..where they give their own price for buy and sell; backed by own liquidity and whose profitability depends on volatile spread. Risky business it is.. but hedging strategies and trading algorithms have so much evolved that, they almost manage it without worrying about volatility. I wonder, how they determine price? Is it that they fetch rate from some exchange in native country.. add and deduct some cents and publish it? How exactly do they determine at what price do they have to buy and sell? Which exchange price they take as standard?

[Muhammed Zakir]

They take USD/BTC price. It is based on US as you can see there is an option for US residents for linking bank account for faster trading option. IMO they look the price in Bitstamp and increase some USD to it. I didn't see they decrease USD as their price is the highest one in the market.
Kindly,
          MZ

[TrailingComet]

As far as I am aware, Coinbase until recently referenced off the Bitstamp price
Not sure if that practice has now changed