Market manipulation related to CBOE and CME futures!

Both once the CBOE future expired and from now on, when the CME bitcoin future is coming settlement, there is a substantial decline in the bitcoin price. Both futures has quite a low volume and I would estimate that these are covered with one liquidity provider\/market maker. The forex market maker is most likely short the long run and possibly long the area. At expiry, they’ll profit in the event the prices are low and have a border after settlement when the cost rebounds. Sadly both CME and CBOE has chosen an incredibly bad settlement processes which are easy to manipulate. For CBOE oahu is the auction price for Gemini – a young which has a very small volume most of the time.

CME’s model is much better, but nevertheless lower, VWAP for the four major exchanges a very good idea, but if that VWAP is calculated on one minute of trading it’s meaningless. With few large participants, the volume on such a brief span of time is extremely limited. Even if many large participants might have interests in almost any of such settlement processes they’d almost certainly have similar position and gains advantage from the identical side in the market manipulation. The VWAP have to have been calculated over several hours instead). The final outcome is we likely will see a lots of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.

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