CME Goes To Increase Monthly Limit On Bitcoin Futures Positions To 10,000 BTC
Chicago Mercantile Exchange Group (CME Group) wishes allow traders in their bitcoin futures market open more large positions. Notification of the intention to increase the monthly limit by BTC-futures contract CME sent to the Commodity Futures Trading Commission USA (CFTC) on Thursday.
It is assumed that the limit will be increased from 1 000 contracts per month before 2,000 for one investor. Since each contract corresponds to five bitcoins, this means that the position limit will be increased to $ 100 million at conversion at the current rate cryptocurrencies.
When this average daily volume trades at present time is only 7,100 contracts, writes CoinDesk with link on representative exchanges. Topics not less, company sees opportunities for growth “amid substantial acceptance of the futures market and analysis of the underlying him basis market bitcoin “.
According to the CFTC, position limits are set in order to curb “excessive speculation” on any exchange commodity, which the forms the basis of futures. “By common rule, positional limits are not required for markets where the threat of manipulation is negligible or very small, ”explains the CFTC at his website.