bitcoin, digital currencies

Coinsetter Launches Incentive Program for Bitcoin Market Makers

November 15, 2014         By: Melanie Macinas

Coinsetter has introduced a new incentive program that seeks to encourage institutionally-capitalized designated market makers (DMMs) to bring substantial liquidity to the low latency bitcoin exchange’s order book.

Positioning itself as Wall Street’s leading bitcoin exchange, Coinsetter now offers maker-taker pricing and a new equity incentive program to promote participation in the bitcoin market to professional market makers.

Dubbed the “Market Making Equity Incentive Program,” this initiative will reserve 10 percent of the company’s equity for distribution to institutionally-capitalized DMMs who provide liquidity to Coinsetter’s order book.

To qualify for the incentive program, DMMs must be qualified accredited investors and trade via Coinsetter’s FIX API, which gives traders real-time access to the bitcoin exchange through their existing trading systems.

It was in August when Coinsetter became the first bitcoin company to launch an institutional FIX 4.4 API.

Participation in the equity will be granted on two factors. DMMs must maintain at least $300,000 of liquidity on Coinsetter’s order book. They will also be rewarded for subsequent trading volume linked to execution from their market making quotes.

“I’m excited to bring the next level of professional market makers into the bitcoin space and provide additional value to those who are already active in it,” said Coinsetter CEO Jaron Lukasiewicz. “By incentivizing active market making, this program will convert into deeper liquidity and tighter spreads for all participants in the bitcoin industry.”

Established in 2012, Coinsetter has developed the only advanced trading technology for digital currency that can support systems used by professional traders and Wall Street.