Rebecca Moen
November 25, 2024 at 10:18
Binance will implement a mandatory self-trade blocking (STP) for all futures users on December 10, 2024, enhancing trading integrity and compliance.
Binance, a leading cryptocurrency exchange, is set to enhance its trading platform by extending the Self-Trade Prevention (STP) functionality to all Binance Futures users. This update, effective December 10, 2024, follows positive community feedback and aims to improve trading integrity and compliance, according to Binance.
STP functionality details
The STP functionality is designed to prevent unintentional self-trading operations, which can lead to unnecessary trading fees and compliance issues. The system will automatically block the execution of orders that may lead to self-trading. Binance has set “EXPIRE_MAKER” as the default STP mode for all orders on its futures platform, ensuring that any unmet quantity in an affected maker’s order will expire immediately.
During the transfer, which begins at 06:00 UTC on December 10, 2024, users may experience a temporary interruption of connectivity to the Futures WebSocket API. Binance advises users to re-establish connections in the event of outages. The update, which covers both USD margined futures and coin margined futures, is expected to last 24 hours.
Impact on API users
API users will benefit from three available STP modes, although “EXPIRE_MAKER” remains the default. Users can specify other modes by including the “selfTradePreventionMode” parameter in their API calls. Binance stresses the importance of compliance, warning that orders set to “NONE” will be rejected due to regulatory requirements.
For detailed inquiries, users are advised to explore the FAQ about STP functionality and seek community help via the Binance developer homepage. Despite execution, self-trades may still occur under certain circumstances, especially with orders placed prior to the update.
Wider context and implications
The move by Binance comes amid increasing regulatory scrutiny of the cryptocurrency sector, particularly regarding trading practices that could be considered manipulative. By mandating STP, Binance is not only aligning with regulatory expectations, but also enhancing user trust by ensuring fair trading practices.
As the cryptocurrency market continues to mature, exchanges like Binance are increasingly adopting measures that promote transparency and fairness. This update is a step towards creating a more reliable and secure trading environment for all participants in the cryptocurrency ecosystem.
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