CME Group (CME) Micro Bitcoin Futures Surpass 100,000 Contracts Traded streetinsider.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from streetinsider.com Daily Mail and Mail on Sunday newspapers.
CME Group Inc (NASDAQ:CME) announced an end to most open outcry trading pits while honing in on emerging markets with new products like Micro Bitcoin futures.
What Happened: Founded in 1848, CME Group is an exchange that builds markets around derivatives like futures, or agreements to buy and sell assets at a particular price and time in the future.
The company has a long-standing history, offering global benchmark products based on interest rates, equity indices, foreign exchange, and commodities. In addition to building products, CME also facilitates and clears trades through its clearinghouse, CME Clearing.
The organization’s move to end in-person trade for most products accelerated around 2015, after open outcry fell to just 1% of total volume. Now, only CME’s Eurodollar options pit will continue to operate.
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The CME micro Bitcoin futures allows retail players and individual crypto investors to deal with small-sized contracts thereby ushering more market liquidity while giving the smaller players equal exposure to a regulated environment.
On Monday, May 3, the Chicago Mercantile Exchange (CME) announced the launch of the Micro Bitcoin Futures in a move aimed at expanding its crypto derivative products. Over the last year, Bitcoin has gained significant price appreciation and momentum.
Thus, the demand for Bitcoin derivative products has also surged. While CME was indeed the first to launch the Bitcoin Futures, it was largely available only to institutional players. The cash-settled CME Bitcoin futures is one of the most popular Bitcoin derivative products.
CME Group Announces Launch Of Micro Bitcoin Futures Date
03/05/2021
CME Group, the world s leading and most diverse derivatives marketplace, today launched Micro Bitcoin futures, further expanding its suite of crypto derivatives offerings. We are pleased to introduce this new contract at a time when we continue to see consistent growth of liquidity and participation in our crypto futures and options, said
Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. At one-tenth the size of one bitcoin, Micro Bitcoin futures will provide an efficient, cost-effective way for a broad array of market participants – from institutions to sophisticated, active traders – to fine-tune their bitcoin exposure and enhance their trading strategies, all while retaining the benefits of
Micro Bitcoin Futures Offer Expanded Opportunities for Crypto Investors
On 5/3/21 at 3:50 PM EDT
The smaller contracts will allow participants to hedge spot Bitcoin risk. Since the launch of our Bitcoin futures contract in 2017, we have seen steady, ongoing growth of liquidity and market participation in our crypto derivatives, especially among institutional traders, Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products, said in a statement.
A woman walks past the entrance of a cryptocurrency exchange office on April 16, 2021 in Istanbul, Turkey. Cryptocurrency has seen wider industry acceptance this year.
Chris McGrath/Getty The introduction of micro Bitcoin futures responds directly to demand for smaller-sized contracts from a broad array of clients and will offer even more choice and precision in how participants can trade regulated Bitcoin futures in a transparent and efficient manner, the statement read.