In fact, I will go so far as to say that it is obscene.
You can not be the exchange and also be a trader on it. The exchange has more information than anybody else, and the whole point of paying for the exchange through transaction costs is that it efficiently and fairly brings all of the market participants together.
Where the exchange, which has more information than anybody else, trades on its own account, it is simply an abuse of trust.
Thankfully, I am aware of advanced plans to counter this sort of behaviour, through the creation of “a punters exchange” that will be a non-profit organisation, and that will take enough profit in the first couple of years to set it up, but will pay all excess profits back in fees later.
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