Market manipulation related to CBOE and CME futures!

Both once the CBOE future expired and from now on, when the CME bitcoin future is arriving settlement, there were an important decline in the bitcoin price. Both futures has quite a low volume and I would reckon that they may be covered with one liquidity provider\/market maker. Forex maker is probably short the future and perhaps long the area. At expiry, they’ll profit if your costs are low and also have a border after settlement once the cost rebounds. Sadly both CME and CBOE has chosen an extremely bad settlement processes which might be simple to manipulate. For CBOE it does not take auction price for Gemini – a young with a really small volume usually.

CME’s model is way better, but still lower, VWAP about the four major exchanges is a good idea, in case that VWAP is calculated on one minute of trading it’s meaningless. With few large participants, the quantity on such a brief span of time is incredibly limited. Even if many large participants might have interests in almost any of these settlement processes they’d probably have the identical position and benefits from the identical side in the market manipulation. The VWAP must have been calculated over several hours instead). The conclusion is always that we likely will see a lot of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.

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