CME announces launch of Bitcoin futures

In a move set to make bitcoin trading more accessible, CME has announced the launch of a futures contract for the crypto currency. This will effectively make bitcoin trading available to traders in a much more streamlined way, without having to set up bitcoin wallets or trading off dedicated bitcoin exchanges.

Each contract size will be 5 bitcoin (BTC) and will be trading on both the CME Globex and CME ClearPort systems. The reference price will use CME’s CF Bitcoin Reference Rate (BRR).

As exhibited in the last few years, bitcoin can exhibit periods of high volatility and the new contract has the following price limit specifications to handle potential large price swings in bitcoin:

“Special price fluctuation limits equal to 7% above and below prior settlement price and 13% above and below prior settlement price and a price limit of 20% above or below the previous settlement price. Trading will not be permitted outside the 20% above and below prior settlement price”.

Below are the full contact specifications:

Infographic: CME CF Bitcoin Reference Rate and Bitcoin Real-Time Index

Thanks to our FCM partnerships, we will be able to offer bitcoin futures trading to our clients. Please contact us to find out more about bitcoin.