ETH-USD Trading Update

On 21 June 2017 at 12:30pm PT, a multimillion dollar market sell
was placed on the GDAX ETH-USD order book. This resulted in orders
being filled from $317.81 to $224.48, translating into a book
slippage of 29.4%. This slippage started a cascade of approximately
800 stop loss orders and margin funding liquidations, causing ETH
to temporarily trade as low as $0.10.

Our initial investigations show no indication of wrongdoing or
account takeovers. We understand this event can be frustrating for
our customers. Our matching engine operated as intended throughout
this event and trading with advanced features like margin always
carries inherent risk.

We are continuing to conduct a thorough investigation and will
keep customers updated with any resulting actions. With that in
mind, it is important to note that these trades are final in
accordance with our GDAX Trading Rules (Section 3.1). Honoring
properly executed orders is critical to maintaining the integrity
of an exchange.

In response to the large price movement we decided to
temporarily halt trading of ETH-USD. Once we confirmed all systems
were operating correctly, we restored trading in accordance with
our Downtime Process (Section 5).

ETH-USD Trading Update was originally published in
The
GDAX Blog on Medium, where people are continuing the
conversation by highlighting and responding to this story.

On 21 June 2017 at 12:30pm PT, a multimillion dollar market sell
was placed on the GDAX ETH-USD order book. This resulted in orders
being filled from $317.81 to $224.48, translating into a book
slippage of 29.4%. This slippage started a cascade of approximately
800 stop loss orders and margin funding liquidations, causing ETH
to temporarily trade as low as $0.10.

Our initial investigations show no indication of wrongdoing or
account takeovers. We understand this event can be frustrating for
our customers. Our matching engine operated as intended throughout
this event and trading with advanced features like margin always
carries inherent risk.

We are continuing to conduct a thorough investigation and will
keep customers updated with any resulting actions. With that in
mind, it is important to note that these trades are final in
accordance with our GDAX Trading Rules (Section 3.1). Honoring
properly executed orders is critical to maintaining the integrity
of an exchange.

In response to the large price movement we decided to
temporarily halt trading of ETH-USD. Once we confirmed all systems
were operating correctly, we restored trading in accordance with
our Downtime Process (Section 5).

ETH-USD Trading Update was originally published in
The
GDAX Blog on Medium, where people are continuing the
conversation by highlighting and responding to this story.