Crypto.com's CDNA Adds Market Maker Combo Incentive Program

Market maker programs pay firms that post buy and sell orders to make markets deeper and easier to trade. Under this one, market makers that reach a specified share of maker volume in executed combo contracts during a weekly review period earn "predetermined incentives" on qualifying resting orders. Orders that take liquidity do not qualify, and self-trades and wash activity are excluded, according to the filing.

The thresholds and payment amounts are in an exhibit that is redacted in the public version, and the exchange said the incentives will be funded from company resources, including trading fees. Participation is open to any market maker as defined in the exchange's rules, with no cap on the number of participants.

In August, the CFTC's Division of Market Oversight issued an advisory about an increasing number of incentive-program filings for event contracts that it said contained procedural or substantive deficiencies.

CDNA handled about 1% of US combo volume, according to Gaming America's analysis of exchange data. The outlet's analysis found combos accounted for $40.8 billion, or 61%, of Kalshi's $66.9 billion in notional volume in the 30 days to Oct. 6, compared with $546 million, or 29%, of CDNA's $1.85 billion. Crypto.com did not respond to Gaming America's request for comment.

Combos have become a major driver of prediction market trading. Parlays made up more than 68% of Kalshi's record volume on Oct. 4, RG reported. Prediction markets are regulated by the CFTC rather than state gaming regulators. For state-licensed alternatives, see RG's guides to US sportsbooks and sports betting apps.