Market manipulation related to CBOE and CME futures!

Both if the CBOE future expired now, when the CME bitcoin future is originating settlement, there were a considerable decline in the bitcoin price. Both futures has a significant low volume and i also would estimate that they may be covered with a unitary liquidity provider\/market maker. This market maker is usually short the future and perchance long lots of. At expiry, they’ll profit if the cost is low and also have a border after settlement if the cost rebounds. Sadly both CME and CBOE has chosen a really bad settlement processes which can be all to easy to manipulate. For CBOE it is the auction price for Gemini – a young with a really small volume more often than not.

CME’s model is much better, but nonetheless not very good, VWAP around the four major exchanges a very good idea, but if that VWAP is calculated on just one single minute of trading it’s meaningless. With few large participants, the volume on a real brief time span is extremely limited. Even if many large participants would have interests in almost any of the settlement processes they’d more than likely have the same position and advantages from exactly the same side in the market manipulation. The VWAP will need to have been calculated over a long time instead). The final outcome is that 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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