Market manipulation related to CBOE and CME futures!
Both in the event the CBOE future expired and after this, in the event the CME bitcoin future is originating settlement, there was clearly a considerable reduction in the bitcoin price. Both futures has a serious low volume and I would guess that they’re covered with a single liquidity provider\/market maker. The forex market maker is usually short the near future and possibly long lots of. At expiry, they’ll profit in the event the price is low this will let you border after settlement in the event the cost rebounds. Sadly both CME and CBOE has chosen an incredibly bad settlement processes which are simple to manipulate. For CBOE it does not take auction price for Gemini – a young having a small volume more often than not.
CME’s model is best, but nevertheless not very good, VWAP around 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 this type of brief period is very limited. Even though many large participants would have interests in a of the settlement processes they’d most likely have a similar position and gains advantage from the same side of the market manipulation. The VWAP have to have been calculated over several hours instead). In conclusion is that we likely will discover a great deal of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
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