Market manipulation related to CBOE and CME futures!
Both if the CBOE future expired now, if the CME bitcoin future is coming settlement, there was an important decrease in the bitcoin price. Both futures has a significant low volume and i also would reckon that they’re dominated by a single liquidity provider\/market maker. Forex trading maker is probably short the longer term and maybe long lots of. At expiry, they’ll profit when the costs are low and have a 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 oahu is the auction price for Gemini – a tender having a small volume most of the time.
CME’s model is way better, however not very good, VWAP on the four major exchanges is a great idea, in case that VWAP is calculated on just one minute of trading it’s meaningless. With few large participants, the degree on such a brief period is very limited. Regardless if many large participants could have interests in almost any of these settlement processes they’d most likely have the same position and gains advantage from the same side with the market manipulation. The VWAP must have been calculated over several hours instead). In conclusion is that we likely will see a lot of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
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