Binance's Innovative STP Feature

Binance’s Innovative STP Feature

Time Stamp: October 11, 2023 9:51 AM
Source Node: 2929072

Binance
is taking steps to enhance its user experience by introducing a
self-transaction prevention (STP) function to prevent unnecessary trading fees
associated with unintentional self-trades. The full rollout of this function
for all spot and margin trading users is scheduled for October 26, as announced
on the company’s blog on October 11.

With
the integration of STP, Binance will introduce the “expire maker” mode
as the default setting for all trading pairs and orders on its spot and margin
trading platforms. This
feature will help users identify orders that have expired due to the STP
function, allowing them to review these transactions via the Binance official
website, Binance App, and Binance Desktop App on the transaction history page.

Binance
initially introduced the STP functionality in January 2023. STP functionality
aimed to block the execution of orders that would result in self-trades. These
self-trades are often an unintended consequence. Particularly,
for application programming interface (API) traders using specific programs to
execute automated trades through the exchange’s trading engine. With the STP
function in place, API traders can prevent accidental self-trading, thereby
avoiding unnecessary fees associated with such transactions.

Vigilance against Market
Manipulation

Binance
explained the need for STP by highlighting the risk of unintentional
self-trading in a competitive marketplace. The
exchange stated that without the STP function, it is possible for orders from
separate trading
units of the same entity, using the same unique UID, but with unrelated trading
strategies, to unintentionally trade with each other.

It’s
essential to note that the STP function addresses unintentional self-trades.
However, Binance remains committed to preventing intentional self-trading on
the platform, considering it a form of market manipulation.

Binance’s
market surveillance team actively monitors and identifies any intentional
self-trading and other potential forms of market manipulation. The exchange has
a range of tools in place to track such activities and investigate offenders.

Binance initially
integrated the STP feature for USD-margined futures on API in August 2023.
Importantly, the STP function is optional and only takes effect when users
choose to enable it.

Binance
is taking steps to enhance its user experience by introducing a
self-transaction prevention (STP) function to prevent unnecessary trading fees
associated with unintentional self-trades. The full rollout of this function
for all spot and margin trading users is scheduled for October 26, as announced
on the company’s blog on October 11.

With
the integration of STP, Binance will introduce the “expire maker” mode
as the default setting for all trading pairs and orders on its spot and margin
trading platforms. This
feature will help users identify orders that have expired due to the STP
function, allowing them to review these transactions via the Binance official
website, Binance App, and Binance Desktop App on the transaction history page.

Binance
initially introduced the STP functionality in January 2023. STP functionality
aimed to block the execution of orders that would result in self-trades. These
self-trades are often an unintended consequence. Particularly,
for application programming interface (API) traders using specific programs to
execute automated trades through the exchange’s trading engine. With the STP
function in place, API traders can prevent accidental self-trading, thereby
avoiding unnecessary fees associated with such transactions.

Vigilance against Market
Manipulation

Binance
explained the need for STP by highlighting the risk of unintentional
self-trading in a competitive marketplace. The
exchange stated that without the STP function, it is possible for orders from
separate trading
units of the same entity, using the same unique UID, but with unrelated trading
strategies, to unintentionally trade with each other.

It’s
essential to note that the STP function addresses unintentional self-trades.
However, Binance remains committed to preventing intentional self-trading on
the platform, considering it a form of market manipulation.

Binance’s
market surveillance team actively monitors and identifies any intentional
self-trading and other potential forms of market manipulation. The exchange has
a range of tools in place to track such activities and investigate offenders.

Binance initially
integrated the STP feature for USD-margined futures on API in August 2023.
Importantly, the STP function is optional and only takes effect when users
choose to enable it.

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