min to read

2019-09-13 11:50:20




News

CME will increase the limit on bitcoin open positions up to 10,000 BTC

BTC and CME

min to read

2019-09-13 11:50:20

The Chicago Mercantile Exchange (CME Group) will increase the monthly limit on the amount of open positions to 10,000 BTC or 2,000 contracts.

The Chicago Mercantile Exchange (CME Group) will increase the monthly limit on the amount of open positions to 10,000 BTC or 2,000 contracts.

 

 

Innovations are scheduled for September 30th, but they still require the CFTC approval.

 


 

At the moment, traders do not hold the maximum number of positions even at current limits (1000 contracts or 5000 BTC). The CME is confident that the growth of interest in flexible risks hedging on bitcoin is yet to come.

 

The limits on the amount of open positions are set by the CFTC to prevent market manipulation. If the agency approves the changes, it will actually recognize that the probability of overspeculation in the bitcoin market has decreased.

 

It should be mentioned, that on average in 2019, the CME concluded 7,237 contracts for bitcoin every day, and the average daily trading volume was $370 million (as of the end of August).

 

Also bitcoin options may soon appear in the listing of CME.

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