May 12, 2023
Key Takeaways
Market makers have long been a cornerstone of global financial markets. By providing consistent liquidity, narrowing bid-ask spreads, and supporting efficient price discovery, they help maintain orderly and resilient trading environments.
Building on proven mechanisms from traditional finance, BitGW applies disciplined trading rules and a comprehensive risk-control framework to digital asset markets. These measures are designed to ensure that all participants operate under clear, consistent, and transparent standards.
Through ongoing market surveillance and structured risk management systems, BitGW actively monitors trading activity to identify and mitigate potential manipulation and abnormal behavior. This approach helps preserve market integrity and reinforces user confidence in the trading environment.
The Role and Value of Traditional Market Makers
In traditional financial markets, market makers are a core component of market infrastructure. Across equities, foreign exchange, and derivatives, they continuously quote both buy and sell prices, ensuring that liquidity is consistently available to market participants.
This structure reduces price dislocations, lowers transaction friction, and supports efficient price discovery by ensuring that counterparties can transact without undue delay. Over time, market-making systems have proven essential to maintaining orderly markets, even amid high-frequency trading activity and large-scale capital flows.
The Evolution of Market Making in Digital Asset Markets
As digital asset markets have matured, market-making practices originally developed in traditional finance have been increasingly adopted across crypto trading venues. Compared with earlier market conditions—often marked by fragmented liquidity and wide bid-ask spreads—the participation of professional market makers has materially improved market depth, price stability, and the overall trading experience.
On the BitGW platform, market-making participants deploy algorithmic trading systems to continuously quote both bid and ask prices, supporting a more resilient and well-structured order book. This approach enhances execution efficiency and helps reduce slippage during periods of heightened volatility, creating a more predictable trading environment for participants of all sizes.
Fair Trading Principles: BitGW’s Core Position
From its inception, BitGW has defined market neutrality and rule consistency as core operating principles. All market participants—including retail users, professional trading firms, and market makers—are governed by the same trading rules without exception.
To uphold a fair and impartial trading environment, BitGW maintains the following commitments:
- No participant receives preferential matching priority or access to privileged trading channels
- No disclosure of order book data, user activity, or trading strategies to market makers or any third party
- No involvement in, or influence over, the trading decisions or fund management activities of external parties
This institutional framework ensures that price formation is determined solely by market supply and demand. By eliminating information asymmetry and structural advantages, BitGW seeks to preserve market integrity and promote fair price discovery.
Market Surveillance and Risk Control Framework
In addition to its fair trading principles, BitGW operates a multi-layered market surveillance and risk management framework designed to continuously monitor trading activity across the platform. This framework focuses on identifying conduct that may disrupt orderly market conditions, including, but not limited to:
- Deceptive order placement and layering: The use of non-genuine orders to create misleading signals of supply or demand
- Wash trading: Self-trading activity intended to artificially inflate reported trading volume
- Price manipulation: Coordinated behavior aimed at improperly influencing market prices
BitGW’s real-time monitoring systems analyze trading patterns on an ongoing basis. When abnormal or suspicious activity is identified, the risk management team responds promptly and may implement measures such as trading restrictions, account suspensions, or additional compliance actions, depending on the nature and severity of the conduct.
Asset Security and Operational Independence
On the BitGW platform, market makers retain full independence over their capital management and trading strategies. BitGW does not participate in fund allocation, strategy design, or execution decisions, nor does it apply differentiated asset security standards based on participant roles.
All user assets—regardless of account type or trading activity—are safeguarded under the same security controls and transparency standards. This uniform approach reinforces the platform’s commitment to neutrality, operational independence, and institutional credibility.
Conclusion
The market-making model has been extensively validated across global financial systems, with its core value grounded in liquidity provision, market stability, and fair price discovery. In the digital asset landscape, BitGW builds upon this proven framework while refining it to meet the unique demands of crypto markets, placing equal emphasis on trading efficiency and market integrity.
Through unified trading rules, continuous market surveillance, and disciplined oversight of abnormal activity, BitGW remains committed to fostering a fair, transparent, and sustainable digital asset trading environment—one in which all participants can engage with confidence under clear, consistent, and trustworthy standards.
