Market manipulation related to CBOE and CME futures!

Both once the CBOE future expired now, if the CME bitcoin future is arriving settlement, there was clearly an important reduction in the bitcoin price. Both futures has quite a low volume and I would guess that they may be dominated by a unitary liquidity provider\/market maker. The forex market maker is most probably short the future and maybe long the area. At expiry, they’ll profit if your costs are low and have a border after settlement when the cost rebounds. Sadly both CME and CBOE has chosen an incredibly bad settlement processes that are all to easy to manipulate. For CBOE it does not take auction price for Gemini – a young having a really small volume usually.

CME’s model is much better, however lower, VWAP around the four major exchanges is a good idea, in case that VWAP is calculated on just one minute of trading it’s meaningless. With few large participants, the amount on such a brief time period is quite limited. Even though many large participants would have interests in almost any of the settlement processes they’d almost certainly have the identical position and benefits from exactly the same side with the market manipulation. The VWAP must have been calculated over many hours 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!.

To read more about bitcoin news check our new resource.