Market manipulation related to CBOE and CME futures!

Both once the CBOE future expired and today, when the CME bitcoin future is coming settlement, there was an important reduction in the bitcoin price. Both futures has a significant low volume and I would estimate that they’re covered with a unitary liquidity provider\/market maker. Forex trading maker is most probably short the future and maybe long the spot. At expiry, they’ll profit when the costs are low and also have a border after settlement if the cost rebounds. Sadly both CME and CBOE has chosen a very bad settlement processes which are easy to manipulate. For CBOE oahu is the auction price for Gemini – a young using a really small volume most of the time.

CME’s model is better, but nevertheless not very good, VWAP about the four major exchanges a very good idea, but if that VWAP is calculated on just one minute of trading it’s meaningless. With few large participants, the degree on a real brief period is very limited. Regardless if many large participants might have interests in different of these settlement processes they’d probably have a similar position and advantages of the identical side of the market manipulation. The VWAP must have been calculated over many hours instead). The conclusion is always 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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