Some trading firms claim this is a step towards less efficient markets and a result of large exchanges looking to boost their volumes.Ether, Altcoins Tank, With Bitcoin as Decoupling Narrative Goes Up in Smoke
Binance was the first to prevent prime brokers from leveraging its multitiered fee system to lower their own costs and offer rebates to clients, making changes Cryptocurrency markets were built for retail customers, first and foremost, and that’s why they differ so dramatically from traditional finance. In mature markets, prime brokers offer institutions the equivalent of a simple bank account, behind which an army of intermediaries safely stores cash and assets and facilitates trades at lightning speed across a range of venues.
“Exchanges have decided that intermediaries are not necessary. They can provide loans as well, right?” said Zarya in an interview. “But they can only provide loans for the positions that are based on their exchange. They cannot provide portfolio margin, which includes your positions across the entire market. So essentially we're moving towards less capital-efficient markets.”