bitFlyer, Inc. (Headquarters: Minato-ku, Tokyo; Representative Director: Yuzo Kano; hereinafter referred to as “the Company”) will begin offering a personal transaction prevention function on bitFlyer Exchange and bitFlyer Lightning from Friday 15 March. 2024.
This feature was introduced on major exchanges around the world to prevent transactions with the same investor on both sides, which do not intend to transfer assets. By providing this feature, unfair trades that mislead others into believing the market is active will be avoided, allowing our clients to trade with more confidence. We will continue to strive for a fair and secure exchange.
About Autonomous Trading
This is a transaction in which the same natural or legal person places a sell order and a buy order for the same assets and executes them against their own order. This is prohibited by the Financial Instruments and Foreign Exchange Act as market manipulation transactions that intentionally mislead other investors into believing that the market is active without there being an actual purpose for transfer of assets. Although there is no intention to mislead other investors into believing that the market is active, there is a risk that such a transaction could be considered a self-trade if one's own orders match.
Special features of the STP (Self-Trade Prevention) function provided by bitFlyer
When a client attempts to place a sell or buy order on bitFlyer Exchange or bitFlyer Lightning, when an opposing order has already been placed and has not yet been executed, our system will automatically determine whether the matching order orders would constitute a self-exchange. If this occurs, a warning will appear on the order screen and the order cannot be placed. The STP feature has been introduced by major exchanges around the world and offered by some for a fee. However, our service will be free for all orders placed by our customers.
Benefits of Self-Trading Prevention
(1) Safe and Secure Trading Opportunities
Once the feature is introduced, all orders will be targeted automatically, preventing unintended self-trades and allowing customers to trade with confidence.
(2) Prevention of loss of trading opportunities
Since client orders always match other parties' orders, lost trading opportunities and unnecessary commission payments due to unintentional personal transactions can be avoided.
(3) Increased convenience for business customers
Corporate clients, primarily institutional investors, often hold multiple accounts and transactions are carried out by multiple traders. With this feature, personal transactions within the same entity can also be avoided, making transactions easier.
*We prohibit the creation of multiple accounts by the same person. Please contact us if you intend to register as a legal entity.
We will continue to strive for a fair and secure exchange and to provide services that our customers can use with confidence.
About bitFlyer, Inc.
bitFlyer was founded in 2014 with a mission to “simplify the world with blockchain” and has grown its crypto asset trading business globally with its group companies bitFlyer USA, Inc. and bitFlyer EUROPE SA bitFlyer has achieved the greatest customer satisfaction* thanks to the patronage of its customers.
As a crypto asset exchange operator and Type I financial instruments trading operator, bitFlyer continues to expand and improve its services and aims to provide a highly liquid crypto asset exchange that satisfies as many customers as possible.
Official website: https://bitflyer.com/en-jp
*Survey: November 2022 Market Study on Crypto Asset Exchange Services
Research organization: Japan Marketing Research Organization
Investigation period: November 11, 2022 – November 25, 2022