Market manipulation related to CBOE and CME futures!
Both in the event the CBOE future expired and after this, when the CME bitcoin future is arriving settlement, there was clearly an important loss of the bitcoin price. Both futures has a significant low volume and I would guess that these are dominated by one liquidity provider\/market maker. Forex maker is usually short the longer term and perhaps long the area. At expiry, they’ll profit in the event the cost is 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 might be an easy task to manipulate. For CBOE oahu is the auction price for Gemini – a tender having a really small volume most of the time.
CME’s model is best, but nevertheless not as good, VWAP on the four major exchanges is a good idea, in case that VWAP is calculated on only one minute of trading it’s meaningless. With few large participants, the degree on such a brief time span is very limited. Even when many large participants would have interests in different of such settlement processes they’d almost certainly have a similar position and advantages of exactly the same side from the market manipulation. The VWAP should have been calculated over several hours instead). In conclusion is that we likely will discover a lots of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
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