Market manipulation related to CBOE and CME futures!

Both in the event the CBOE future expired and today, if the CME bitcoin future is originating settlement, there was a substantial reduction in the bitcoin price. Both futures has a significant low volume i would estimate that they are covered with one single liquidity provider\/market maker. This market maker is probably short the near future and perchance long the location. At expiry, they’ll profit if the cost is low and also have a border after settlement in the event the cost rebounds. Sadly both CME and CBOE has chosen a really bad settlement processes that are simple to manipulate. For CBOE oahu is the auction price for Gemini – a young having a really small volume usually.

CME’s model is much better, however not as good, VWAP on the four major exchanges a very good idea, in case that VWAP is calculated on just one minute of trading it’s meaningless. With few large participants, the amount on this type of brief span of time is extremely limited. Even though many large participants may have interests in different of such settlement processes they’d most likely have a similar position and advantages of precisely the same side of the market manipulation. The VWAP must have been calculated over a long time instead). The final outcome is always that we likely will see a great deal of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.

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