Market manipulation related to CBOE and CME futures!

Both once the CBOE future expired and from now on, when the CME bitcoin future is on its way settlement, there was clearly an amazing decrease in the bitcoin price. Both futures has a good low volume i would guess that they’re dominated by one single liquidity provider\/market maker. Forex trading maker is most likely short the long run and maybe long the spot. At expiry, they’ll profit in the event the cost is low and have a border after settlement when the cost rebounds. Sadly both CME and CBOE has chosen a really bad settlement processes which can be an easy task to manipulate. For CBOE oahu is the auction price for Gemini – a young which has a tiny volume more often than not.

CME’s model is much better, but nonetheless not as good, VWAP for the four major exchanges is a good idea, but if that VWAP is calculated on just one single minute of trading it’s meaningless. With few large participants, the volume on a real brief period is quite limited. Even though many large participants would have interests in different of these settlement processes they’d most likely have the identical position and advantages from the same side from the market manipulation. The VWAP have to have been calculated over many hours 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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