You are here: Home » Reuters » News
Business Standard

Factbox: Cboe, CME to launch bitcoin futures contracts

Reuters 

(Reuters) - Cboe Inc and CME Group Inc will launch on on Dec. 10 and Dec. 17 respectively.

Here are some of the differences between the products to be offered by the exchange operators.

CONTRACT UNIT

-The Cboe Contract will use the ticker XBT and will equal one

-The CME Contract will use the ticker BTC and will equal five bitcoins.

PRICING AND SETTLEMENT

-Both Cboe's and CME's will be settled in U.S. dollars, allowing exposure to the without actually having to hold any of the cryptocurrency.

-Cboe's contract will be priced off of a single auction at 4 p.m. Eastern time (2100 GMT) on the final settlement date on the Gemini cryptocurrency exchange.

-CME's contract will be priced off of the CME Reference Rate, an index that references pricing data from cryptocurrency exchanges, currently made up of Bitstamp, GDAX, itBit and Kraken.

TRADING HOURS

-Cboe's XBT contract will trade on CFE, with regular trading hours of 9:30 a.m. to 4:15 p.m. Eastern time on Mondays and 9:30 a.m. to 4:15 p.m Tuesday through Friday. Extended hours will be 6 p.m. Sunday to 9:30 a.m. Monday, and 4:30 p.m. Monday through to 9:30 a.m. Friday.

-CME's BTC will trade on CME Globex and CME ClearPort Sunday to Friday from 6 p.m. - 5 p.m. Eastern time with a one-hour break each day beginning at 5 p.m.

MARGIN RATE AND CLEARING

-Cboe's contract will clear through the Options Clearing Corporation and a 30 percent margin rate will apply.

-CME's contract will clear through CME ClearPort and will have a 35 percent initial margin rate.

CONTRACT EXPIRATIONS

-Cboe said it may list up to four weekly contracts, three near-term serial months, and three months on the March quarterly cycle.

-CME said it will list monthly for the nearest two months in the March quarterly cycle (March, June, Sept., Dec.) plus the nearest two serial months not in the March quarterly cycle.

PRICE LIMITS AND TRADING HALTS

-Cboe will halt trading in its contract for 2 minutes if the best bid in the XBT contract closest to expiration is 10 percent or more above or below the daily settlement price of that contract on the prior business day.

Once trading resumes, if the best bid in the XBT contract closest to expiration is 20 percent or more above or below the daily settlement price of that contract on the prior business day, the will be halted for 5 minutes.

-CME will apply price limits, also known as circuit breakers, to its of 7 percent, 13 percent, and 20 percent to the fixing price. Trading will not be allowed outside of the 20 percent price limit.

Sources: Cboe and CME

(Reporting by John McCrank in New York; Editing by Lisa Shumaker)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 07 2017. 13:55 IST
RECOMMENDED FOR YOU