CME Bitcoin Trades Set For December 11th

CME
Still pending regulatory approval, CME has just announced on their website their plans of launching Bitcoin futures on December 10th and trading set to begin on December 11th. The world’s largest options exchange first announced its plans of offering the futures opportunity, at the end of October. At that time, CME’s Chairman and CEO, Terry Duffy, stated: “Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract — As the world’s largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities.”

Preparing For Launch

CME has already released its Bitcoin future market specs on its website and is gearing up for the approval of the launch. The futures will be listed on Clearport, CME, and CME’s Globex central standard time, with set limits on 1,000 contracts.

Source:

http://www.cmegroup.com/trading/equity-index/us-index/bitcoin_contract_specifications.html

Each contract will be based on the price of BTC per USD and each one will have a unit of five index points, which constitutes 5 BTC. As shown in the graph above, the minimum price fluctuations are set at a total of $25 each and the monthly contracts are listed for the nearest 2 months in the March quarterly cycle.

Will it tame volatility?

Bitcoin enthusiasts and some speculators assume these futures will bring about less volatility in the Bitcoin spot markets. The company’s contracts will be issued for $25 USD but according to further information provided on CME’s website, will not swing more than 20 percent on the previous settlement price. Unfortunately, with so much unknown and this being the first cryptocurrency trading on a grand scale, this “taming” is a theoretical concept. The Bitcoin community and its investors seem excited for the weeks to come, as it could be monumental for the digital currency. Featured Image: twitter

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