CME Group Announces Launch Date of Options on Bitcoin Futures Product
Ana Alexandre's original article for cointelegraph.com reduced by 42%
The Chicago Mercantile Exchange Group has announced the date it expects to launch options on Bitcoin futures in a statement on Nov. 12."In response to growing interest in cryptocurrencies and customer demand for tools to manage bitcoin exposure, CME Group will launch options on Bitcoin futures on January 13, 2020," the company revealed in the announcement. The CME Group said that the upcoming product is still pending regulatory approval.
Contract specificationsCME Group specified that one Bitcoin futures contract will represent 5 BTC quoted in U.S. dollars, with a block minimum of five contracts. "Option exercise results in a position in the underlying cash-settled futures contract.
In-the-money options are automatically exercised into expiring cash-settled futures, which settle to the CME CF Bitcoin Reference Rate at 4:00 p.m. London time on the last Friday of the contract month." CME Group's intentions and expectations on BTC futures optionsIn September, CME Group revealed plans to roll out options on BTC futures by Q1 2020. At the time, Tim McCourt - CME Group global head of equity index and alternative investment products - said that the new products are intended to help institutions and professional traders manage spot market BTC exposure, and enable them to hedge BTC futures positions in a regulated exchange environment.
At the same time, McCourt also stated that CME Group has no current plans to launch physically-settled Bitcoin contracts.
Donate Bitcoin to this address
Scan the QR code or copy the address below into your wallet to send Bitcoin
Donate Ethereum to this address
Scan the QR code or copy the address below into your wallet to send Ethereum
Donate With MetaMask
Donate ETH With MetaMask
Alternatively, support us by using the following referral links:
CN [too long; didn’t read]
Summarised crypto news.