Coinbase announced this week that it will be updating Coinbase Pro’s market structure on Friday, March 22. In a blog post announcing the news, the company said that the changes are intended to enhance the platform’s market health by focusing on increased liquidity, improved price discovery, and smoother price movements.
The post highlighted five changes that will be implemented:
New fee structure that is designed to increase liquidity by reducing the delta between maker and taker fees
Updated order maximums designed to help protect customers from large price movements
New order increment (“tick”) sizes aimed at improving market structure
Turning off stop market orders
Adding market order protection points
The planned changes have reportedly been greeted with a mixed reception from the cryptocurrency community. Some have already complained about the increase in fees for small traders and the company’s decision to end stop market orders and instead require users to submit those orders as limit orders. Other observers have suggested that the changes should achieve the company’s stated goals by increasing trading volume and liquidity.
The planned addition of market order protection points will feature a 10 percent safeguard for market orders. According to Coinbase,
Market orders that move the price in excess of 10% will stop executing and return a partial fill. For example: a market buy submitted when the last trade price is $4,000 will only fill at price levels below $4,400. Protection points help prevent large orders from causing more than 10% slippage.
To implement these changes, Coinbase Pro will go offline at 6 pm PDT on Friday, March 22, and resume service approximately 30 minutes later at 6:30 pm PDT.