Chicago Mercantile Exchange Opens Trading in Bitcoin Options
The Chicago Mercantile Exchange (CME Group) this Monday announced the start of trading on the Bitcoin options market. The launch took place at 18:00 Moscow time.
The asset of the new CME option is a Bitcoin futures contract launched by the same exchange at the end of 2017. One contract corresponds to five bitcoins and is centrally cleared on the trading platform, which avoids counterparty risks. To determine the bitcoin rate, CME uses data from several cryptocurrency exchanges.
According to analyst firm Skew, Bitcoin options have been in high demand since the beginning of the year – by Friday, trading volume exceeded $ 90 million. About 95% of Bitcoin options transactions last year took place on the Deribit derivatives exchange. It recently announced that it would move the entity that operates the platform from the Netherlands to Panama. The reason was the entry into force of the EU Fifth Anti-Money Laundering Directive.
The FTX trading platform also announced the launch of its own Bitcoin options on Sunday. Two hours after the announcement, the CEO of the company Sam Bankman-Fried announced the achievement of a trading volume of $ 1 million. Previously, FTX received support from the Binance cryptocurrency exchange.
On the eve of the opening of trading in CME bitcoin options strategist JPMorgan Chase & Co Nikolaos Panigirtzoglu noted the growing interest in cryptocurrency derivatives among institutional investors.
“In recent days, there has been an increase in activity on CME futures contracts. The extraordinary level of activity probably reflects the high expectations of market participants in connection with option contracts, “he wrote..