February 22, 2024

CME has published specifications for upcoming Bitcoin options

The Chicago Mercantile Exchange (CME Group) has unveiled specifications for bitcoin options, which are expected to be launched infirst quarter of 2020.


The site says that new tools will becalculated and based on the CME CF Bitcoin Reference Rate (BRR) - the reference bitcoin rate against the US dollar, compiled according to the spot exchanges Bitstamp, Coinbase, itBit, Kraken and Gemini.

As well as futures, 1 contract will becorrespond to 5 BTC. Options will be of European type - unlike American ones, they cannot be exercised until the end of the validity (maturity). The minimum price step is 5 index points, corresponding to $ 25.

“We are working on the launch of options based on existing futures"In the future, we will be able to meet the needs of our clients," said Tim McCourt, Managing Director of the CME. —There may be two options for bitcoin futures.basic types - call and put. They imply the right, but not the obligation, to respectively buy or sell the underlying contracts at the end of their term.

According to McCourt, the expiration period of the options will coincide with the expiration date of the underlying monthly bitcoin futures. The hours of trading options and futures will be similar.

However, before launching the tools, some ofspecifications subject to change. Now CME Group is coordinating a new tool with regulators. Apparently, the exact option launch date depends on the latter.

Earlier, ForkLog reported that earlier CME will launch the bitcoin options regulated Bakkt platform.