The 45-Millisecond Ether Flash Crash Prompts Safeguard Effort
- Coinbase’s GDAX exchange is considering using circuit breakers
- GDAX might also introduce incentives to lure market makers
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Last week’s flash crash in the ethereum digital currency prompted the venue where it happened to consider safeguards used in other markets such as stocks.
Circuit breakers that would pause trading to prevent accidents from spiraling out of control and a system of incentives to lure market makers who’d help keep prices from dropping too far are among the options under consideration, according to Adam White, general manager of Coinbase Inc.’s GDAX market.