How Delayed Reporting Protects Large Crypto Block Trades
Summary
Deribit’s delayed publication feature lets traders executing qualifying large block or Block RFQ trades postpone when trade details appear in public data feeds. The stated purpose is to reduce information leakage when a large order is completed in several tranches: immediate reporting of an early tranche can alert other participants and worsen execution on later ones. The article compares the problem with the rationale behind MiFID II’s Large In Scale rules.
The default delay is eight hours, capped so reporting occurs at least one hour before daily settlement; open interest for the individual instruments is also delayed. Trades still execute immediately, and margin and equity update in real time. All trades are eventually reported. The feature does not cover on-screen or liquidation trades. The document describes an exchange reporting mechanism and its intended benefit, but provides no performance evidence quantifying whether delayed publication improves execution or how often it is used.
Key ideas
- Delayed reporting is intended to limit information leakage while large orders are executed in tranches.
- The delay applies to qualifying block and Block RFQ trades, with a default of eight hours and a settlement-based cap.
- Individual-instrument open interest is delayed along with public trade data.
- Execution and risk updates remain immediate, and trades are eventually reported publicly.
- On-screen and liquidation trades are outside the feature.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.