Market manipulation related to CBOE and CME futures!
Both once the CBOE future expired and today, if the CME bitcoin future is originating settlement, there is a considerable decline in the bitcoin price. Both futures has a serious low volume i would guess that they’re dominated by one single liquidity provider\/market maker. The forex market maker is usually short the long run and maybe long the spot. At expiry, they’ll profit when the prices are low and also have a border after settlement in the event the cost rebounds. Sadly both CME and CBOE has chosen an incredibly bad settlement processes which might be easy to manipulate. For CBOE it’s the auction price for Gemini – a tender which has a really small volume more often than not.
CME’s model is way better, but still lower, VWAP for the four major exchanges is a great idea, in case that VWAP is calculated on only one minute of trading it’s meaningless. With few large participants, the amount on a real brief time period is quite limited. Even if many large participants might have interests in any of the settlement processes they’d probably have similar position and gains advantage from the same side in the market manipulation. The VWAP will need to have been calculated over a long time instead). Concluding is that we likely will discover a large amount of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
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