Do you consider yourself an active crypto trader? Working your orders on ErisX may help you decrease your trading costs. If you keep passive, competitive orders on the market, ErisX will reward you with real-time rebates for your contribution to price discovery.
Certain passive order flow can earn rebates rather than incur fees. Orders that enter the market and post, i.e. are not filled immediately, but later fill within a designated time frame, qualify for a rebate. For example, a trader may place a Buy order at a price just below the best bid, so it enters the book unexecuted. The trader then decides to modify the order by increasing his/her limit price, joining the best bid. If the order is then filled within the Rebate Time period (defined as the execution time minus the time of the most recent order modification) the trader receives our Maker Rebate which is immediately credited to their balance.
However, if a trader places a passive order that is added to the order book but does not match within the Rebate Time, the order would incur our Maker fee. This would happen if the order is filled in a time that is greater than the Rebate Time period. An order that, upon entry, immediately matches with the current order(s) resting in the Order Book, ie “crosses the spread”, would incur our Taker fee.
Traders should consider the opportunity cost of implementing this strategy vs simply executing orders immediately and paying a fee. Passive orders entered into the market may remain on the Order Book without being filled.
We believe in the crypto ethos of accessibility to all on equal terms. Our time-tested and proven central limit order book (CLOB) ensures that the best price on the market is accessible to everyone. Not only do CLOBs level the playing field but with our combination of the Exchange Rulebook and real-time surveillance we work to prevent malicious activity as well. CLOBs are used in traditional commodity markets by leveraging a matching engine that employs a price/time matching algorithm:
- All orders submitted to the matching engine are treated equally, they are processed in the order in which they are received, no preferential treatment.
- Once in the order book, orders are prioritized first by price (bids are ordered priced highest to lowest, and offers are ordered priced lowest to highest), and then by time within each price level (at a given price level, orders are prioritized per time of arrival from oldest to youngest).
This is an explicit rule that the ErisX matching engine strictly follows to preserve equal access as well as prevent market manipulation. We further operate a conflict-free venue by not having our own trading desk that could take a position against a client.
Regulation and Licensing
Our futures market is regulated by the Commodity Futures Trading Commission. Specifically, on the Federal level, we hold, respectively, Designated Contract Market (DCM), and Derivatives Clearing Organization (DCO) licenses.
Eris Exchange, the entity which holds the DCM license, provides fair and orderly trading as well as the efficient dissemination of price information on bitcoin and Ether, currently. Eris Clearing is the entity that holds the DCO license and clears our crypto futures contracts. Specifically, Eris Clearing is a custodian for futures customer trades. Eris Clearing complies with Commodity Exchange Act core principles including, among other things, establishing standards and procedures to protect members’ and participants’ funds.
Our cryptocurrencies market is licensed in accordance with state licensing requirements. To date, ErisX offers its services in 50 states and jurisdictions, including New York. We are proud to have secured the New York Virtual Currency License. We are currently working to complete the map and offer our services in Nevada, Virginia as well as the U.S. Virgin Islands.
While the CFTC does not have oversight of the spot market, ErisX applies CFTC core principles from the futures market to the spot activities, bringing these time-tested standards and methods to cryptocurrency trading in the spot market. We chose to apply the core principles to our cryptocurrency trading in the spot market to ensure we have taken every step to protect our investors as well as the integrity of our markets. This is on top of Money Service Business (MSB), Money Transmitter Licenses (MTL) and Bitlicense requirements. We are aware of no other market operator that has gone this far.
ErisX is a regulated spot and futures market for cryptocurrencies. Our futures market is regulated by the Commodity Futures Trading Commission and we apply CFTC core principles to our spot market to best protect traders and investors. We operate a central limit order book to ensure the best price on the market is available to everyone, and we reward passive, competitive market orders. If you are an active crypto trader, placing working orders on ErisX may help you increase profits.
To access and confidently trade cryptocurrencies on ErisX’s platform please sign up on our website.
Terms and conditions apply, all trading is subject to the Eris Exchange Rulebook. IRA Accounts do not qualify for Paid to Rest rebate.