A leading exchange's market-making turmoil: 3-second advance window triggers conflict of interest controversy.

2025-12-24 01:06:12

Abstract generation in progress

[Chain News] The market making activities of exchanges have taken on new forms. A leading exchange is recently hiring quantitative traders specifically to handle market making and counter-trading for its sports prediction market, which sounds like they are aiming to make a significant profit while controlling risks.

But the intricacies here are worth pondering. Although this exchange claims that its internal market-making team does not have an advantage with client data, it immediately opened a 3-second front-running trading window for market makers. As soon as this rule was announced, many people in the industry became uneasy—this is somewhat similar to the practices of traditional gambling platforms, and it’s clear to everyone that there is a significant space for conflicts of interest here.

The exchange is both a market participant and a rule maker, and when this dual identity can be clarified is indeed a question.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

12 Likes

Reward
12
5
Repost
Share

Comment

0/400

CexIsBad

· 19h ago

3-second window? This is ridiculous, it's just giving market makers a backdoor.

View OriginalReply0

GateUser-a5fa8bd0

· 19h ago

3-second window? Ha, this is just blatant inequality.

View OriginalReply0

OnchainHolmes

· 19h ago

3-second window? Isn't this just blatant insider trading, just packaged a bit more nicely?

View OriginalReply0

SellTheBounce

· 19h ago

This trap again? A 3-second window has become so blatant, it seems the bottom line is being breached time and time again.

View OriginalReply0

NFTBlackHole

· 19h ago

3-second advance window? This is clearly an unequal situation, who believes they don't have an advantage? --- Here we go again with this trick, the exchange acts as both the athlete and the referee, nobody can withstand that. --- Market makers have a 3-second window, what about retail investors? The gap is extraordinarily large. --- Claiming no data advantage then handing out priority to others, ha, can this logic get any more convoluted? --- It's no different from a casino opening a game and betting themselves, it's only a matter of time before something goes wrong. --- Why do all the big exchanges play like this? It feels like it's already become an industry standard. --- Conflict of interest? To put it bluntly, they just want to eat from both sides. --- 3 seconds, how much can a trader do in that time? Everyone knows the answer.

View OriginalReply0