The CME Group wants to provide market players with more precision and flexibility when it comes to controlling the issue of transient swings in the price of Ether and Bitcoin.
The CME Group, a derivatives market, said on 17th April that it will increase the number of crypto options available by adding additional choices to its conventional and small BTC down $28,949, and ETH down $1,958 contracts. These big agreements will be accessible starting on May 22, subject to regulatory review, and the expiries would have to be available throughout the entire workweek from Monday through Friday.
Updates As Given By The CME Group
New expiry durations for Ether and Bitcoin futures trading will be part of CME Group’s increased selection of cryptocurrency alternatives, according to the release. With these options now having daily deadlines from Monday through Friday, traders will have more control over managing price risks for the short term. In addition, Thursday and Tuesday expirations will be added to the existing Friday, Wednesday, and Monday contracts for choices on small Ether and Bitcoin futures contracts. All Ether and Bitcoin choices on other contracts now provide monthly and quarterly expiries, which will be complemented by the recently introduced expires.
The action, as per CME, aims to give market players more accuracy and adaptability in handling price risk for Ether and Bitcoin. Until Q1 2023, the CME Group’s Ether and Bitcoin trading and options contract has already set a new average notional record of above $3B. This shows that there is a rise in customer requirements for hedging products.
A remarkable 11,500 agreements and trading volumes, with a peak estimate of around 24,094 agreements for Bitcoin options and futures traded in Q12023, made up the major trading highlights for the complex. A remarkable of around 2,357 stock of Bitcoin options were exchanged on 22nd March and a record 14,700 transactions worth of OI were traded on 31st March in the CME Group’s Bitcoin and Ether futures and options, which have seen a rise in trading volumes.
