Both once the CBOE future expired and from now on, once the CME bitcoin future is originating settlement, there were a considerable decrease in the bitcoin price. Both futures has a good low volume and I would guess that these are covered with a single liquidity provider\/market maker. Forex maker is usually short the longer term and possibly long the location. At expiry, they’ll profit if your prices are low and have a border after settlement when the cost rebounds. Sadly both CME and CBOE has chosen an incredibly bad settlement processes which can be an easy task to manipulate. For CBOE it is the auction price for Gemini – a young which has a really small volume generally.
CME’s model is way better, however not as good, VWAP for the four major exchanges a very good idea, but when that VWAP is calculated on one minute of trading it’s meaningless. With few large participants, the quantity on a real brief span of time is extremely limited. Even when many large participants could have interests in any of such settlement processes they’d more than likely have the same position and advantages from the identical side of the market manipulation. The VWAP must have been calculated over several hours instead). The final outcome is we likely will see a lots of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
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