Market manipulation related to CBOE and CME futures!

Market manipulation related to CBOE and CME futures!

Both in the event the CBOE future expired now, when the CME bitcoin future is on its way settlement, there were a considerable reduction in the bitcoin price. Both futures has quite a low volume and I would guess that they may be dominated by one liquidity provider\/market maker. Forex maker is probably short the longer term and maybe long lots of. At expiry, they’ll profit when the cost is low and have a border after settlement in the event the cost rebounds. Sadly both CME and CBOE has chosen a very bad settlement processes which are simple to manipulate. For CBOE it’s the auction price for Gemini – a young using a tiny volume usually.

CME’s model is way better, however lower, VWAP for the four major exchanges may be beneficial, in case that VWAP is calculated on just one single minute of trading it’s meaningless. With few large participants, the quantity on this kind of brief period is very limited. Even if many large participants could have interests in different of those settlement processes they’d most likely have similar position and benefits from exactly the same side with the market manipulation. The VWAP have to have been calculated over many hours instead). The final outcome is we likely will discover 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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Holly Rodriguez

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