Derivatives exchange CME Group has announced it will launch options on futures contracts on January bitcoin.
In a notice on its website on Tuesday, the Chicago-based exchange said, as long as it gets the green light from regulators, the choice will be aired on January 13, 2020.
In late October, the company published the details of the product selection, said each contract will be based on a futures contract bitcoin (consisting of five bitcoin). They will be quoted in US dollars per bitcoin with a tick size of $ 25 (or $ 5 for reduced tick size), and will be traded between 5:00 Central Time on Sunday to 4:00 Central Time on Friday.
In today’s announcement, Tim McCourt, the exchange’s global head of equity indices and alternative investment products, said:
“Since the launch of our Bitcoin futures nearly two years ago, clients have expressed a growing interest in options as another way to hedge and trade in these markets. We have worked closely with clients and the industry to establish a robust and increasingly liquid underlying futures market here at CME Group, and we believe Bitcoin options will now offer our customers greater precision and flexibility to manage their risk. “
Provide some data about the performance of the contract for the current bitcoin futures, CME said it looks average daily volume of more than 6,500 contracts so far in 2019, which equate roughly 32,500 bitcoin. Now there are more than 3,500 individual accounts registered to trade the product, and nearly half of the trading volume comes from outside the US
Tim McCourt image via CoinDesk archives