Bitcoin denominated trading platform 1Broker has announced changes to the calculation for their BTC/USD price index. Instead of Bitstamp, the company will now use Gemini Trust Company, LLC as the second price average for its index. The new price is now calculated by the non-volume weighted average of:
Coinbase UK Ltd. (GDAX, BTC/USD)
Gemini Trust Company, LLC. (BTC/USD)
There are multiple reasons for this change: 1Broker mentioned that Bitstamp’s price had a big offset to other exchanges during the past weeks. Due to the many received any complaints about the resulting price movements and negative impact on the trading experience, the change was initiated. With Gemini, the company hopes to have found a stable and trusted replacement.
Another change introduced is a “floating” spread which is automatically recalculated hourly and is based on market conditions. Managing the risk for the company’s BTC/USD market has never been harder says the company with the influx of new users and the implantation of their copy trade system. The company stated, “we want to apologize in advance for the occasional high spreads, but in order to keep this contract profitable for us, this system is required.”
Less trading breaks
Also altered, the daily trading break between 5:00 and 5:15 p.m EST for the BTC/USD market has been eliminated with one exception: A weekly trading break on Friday at the same time will remain. The time-frame is necessary for the company to deploy software updates and make other important changes on its servers.