Market manipulation related to CBOE and CME futures!

Both in the event the CBOE future expired and after this, when the CME bitcoin future is coming settlement, there were an amazing decline in the bitcoin price. Both futures has a good low volume and that i would estimate that they are covered with a unitary liquidity provider\/market maker. The forex market maker is usually short the longer term and maybe long the area. At expiry, they’ll profit if your cost is low where you can border after settlement in the event the cost rebounds. Sadly both CME and CBOE has chosen a really bad settlement processes which are simple to manipulate. For CBOE it is the auction price for Gemini – a young which has a small volume generally.

CME’s model is much better, however not as good, VWAP for the four major exchanges is a good idea, in case that VWAP is calculated on one minute of trading it’s meaningless. With few large participants, the amount on such a brief time span is incredibly limited. Regardless if many large participants might have interests in a of the settlement processes they’d almost certainly have the identical position and gains advantage from the same side in the market manipulation. The VWAP must have been calculated over a long time instead). In conclusion is that we likely will see a large amount of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.

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