The World’s Largest FX Exchange Hopes to Tame Bitcoin Volatility

The Chicago Mercantile Exchange &
Chicago Board of Trade otherwise known as
CME Group announced its bitcoin futures
specs this week. Alongside this, the
Chairman Emeritus of CME Group, Leo
Melamed, told press bitcoin is set to
become a new asset class.
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CME Group Reveals Specs for
Bitcoin Futures Contracts
Last week news.Bitcoin.com reported on the
world’s largest options and futures
exchange CME Group launching its bitcoin-
based futures before the end of the year.
Now the company has released the BTC
futures specs giving more details to how
the fund will be traded. Contract
specifications include a contract unit of five
bitcoin defined by the CME CF Bitcoin
Reference Rate (BRR). Product codes will
be called “BTC BTIC: BTB” and trade
alongside other options during the CME
Globex and CME ClearPort trading hours.
“Trading in expiring futures terminates at
4:00 p.m. London time on last day of
trading. Position limits and spot position
limits are set at 1,000 contracts,” explains
CME’s bitcoin futures specs . “A position
accountability level of 5,000 contracts will
be applied to positions in single months
outside the spot month and in all months
combined — The reportable level will be 25
contracts.”
Investors will probably be interested in
hearing about CME Group’s plans to create
limits for bitcoin price fluctuations.
According to the Wall Street Journal, the
publication has seen documents that detail
thresholds will initiate when the value of its
bitcoin futures change by 7%, 13%, and
20%. “The first two thresholds for 7% and
13% moves are for “soft” limits, which
could potentially trigger a two-minute pause
in trading of bitcoin futures,” a person
familiar with the matter explains.