Market manipulation related to CBOE and CME futures!

Both if the CBOE future expired now, once the CME bitcoin future is originating settlement, there was a considerable loss of the bitcoin price. Both futures has quite a low volume and that i would guess that they’re dominated by a single liquidity provider\/market maker. This market maker is probably short the near future and perchance long the area. At expiry, they’ll profit if the costs are low where you can border after settlement if the cost rebounds. Sadly both CME and CBOE has chosen an incredibly bad settlement processes which are an easy task to manipulate. For CBOE it does not take auction price for Gemini – a young having a small volume most of the time.

CME’s model is best, but nevertheless lower, VWAP on the four major exchanges is a great idea, but when that VWAP is calculated on just one single minute of trading it’s meaningless. With few large participants, the amount on a real brief period is extremely limited. Even though many large participants may have interests in almost any of those settlement processes they’d more than likely have the same position and gains advantage from exactly the same side from the market manipulation. The VWAP will need to have been calculated over several hours instead). Concluding is that 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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