Market manipulation related to CBOE and CME futures!

Both in the event the CBOE future expired and from now on, once the CME bitcoin future is on its way settlement, there was a considerable decrease in the bitcoin price. Both futures has quite a low volume and that i would estimate that these are covered with one single liquidity provider\/market maker. Forex trading maker is most probably short the long run and perhaps long the location. At expiry, they’ll profit if your price 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 an easy task to manipulate. For CBOE it’s the auction price for Gemini – a young using a small volume generally.

CME’s model is way better, but still lower, VWAP about the four major exchanges a very good idea, but when that VWAP is calculated on only one minute of trading it’s meaningless. With few large participants, the volume on this type of brief period is very limited. Even though many large participants would have interests in any of such settlement processes they’d almost certainly have the identical position and gains advantage from exactly the same side from the market manipulation. The VWAP should have been calculated over hrs instead). The conclusion is the fact 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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