Group Chicago Mercantile exchange (CME) has no plans to make any changes to your futures product is tied to the bitcoins, while the other derivative platform – Cboe – announced that it would not hold a listing of new BTC futures in March.
“No announcements related to changes related to our futures contracts for bitcoin is not” – said the representative of the exchange in response to the request CoinDesk.
As previously noted, the bitcoin futures Cboe are significantly behind the proposed CME in terms of volume of trading than can be explained by the pursuit of the first of them to rethink the approach to not especially popular product.
The CEO of the cryptocurrency derivatives exchange Level Trading Field Lane, Sarumi suggested that different level of interest in cryptocurrency the proposals of the two exchanges may be due to a different approach to their promotion.
CME originally made your product available to a larger group of traders, said Sarumi, adding:
“To connect to the CME and Cboe at the same time expensive. If you are already trading on the exchange the other products, it is free. Otherwise you have to pay for connection, license, market data, cross-connections, etc. – and all this only in order to sell a new product?”
Cboe issued bitcoin futures platform Cboe Futures Exchange (CFE), which people mostly use for trading futures on the VIX, he said.
“If you don’t trade VIX, why do you need to pay additional hundreds of dollars from each account to play with bitcoin?”
CME Group, in turn, has added bitcoin to the group of the Fund’s assets in its main market, which offers significantly more products and asset classes with higher trading volumes, said Sarumi. Thus, traders do not have to bear the additional costs if they want to trade bitcoin.
In addition, CME has spent resources on the promotion of bitcoin futures, and Cboe in this context was quite passive.
Its role could play and methods of pricing. The Cboe uses the auction price of the Gemini exchange, and CME collects data from multiple spot markets that can instill additional confidence in traders.
Director of research company TradeBlock John Todaro believes that cryptocurrency product CME has attracted market participants the flexibility:
“CME better positions limits, allowing you to keep more of open contracts on a single account. Over time, CME has received a large share of the market. In an effort to remain competitive, Cboe raised the limits on contracts in the late summer of 2018, but at this point, the trading volume on the CME was much higher.” Discuss current news and events on the Forum