Three days earlier than Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS), the world’s largest derivatives market when it comes to quantity, CME Group, introduced plans to checklist ethereum choices. While CME’s ether choices product prepares for regulatory assessment, the corporate detailed that the choices contract can be measured at 50 ether per contract, utilizing the CME CF Ether-Dollar Reference Rate.
CME Group Reveals Ethereum Options Launch
The Chicago Mercantile Exchange in any other case referred to as CME Group revealed the corporate’s intentions to checklist ethereum choices contracts three days earlier than The Merge on September 12, 2022. CME detailed that the brand new ether choices be a part of the agency’s bitcoin (BTC) choices and micro-sized bitcoin and ether options contracts.
“These new contracts ship one ether futures, sized at 50 ether per contract, and primarily based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference fee of the U.S. greenback worth of ether,” the derivatives market mentioned on Thursday. CME’s world head of fairness and FX merchandise, Tim McCourt, famous on Thursday that the brand new ether choices contracts add to the corporate’s current lineup of crypto derivatives merchandise.
“The launch of those new choices contracts builds on the numerous progress and deep liquidity we’ve seen in our current Ether futures, which have traded greater than 1.8 million contracts to this point,” McCourt mentioned in an announcement. The CME govt added:
As we strategy the extremely anticipated Ethereum Merge subsequent month, we proceed to see market contributors flip to CME Group to handle ether worth threat. Our new ether choices will supply a big selection of purchasers higher flexibility and added precision to handle their ether publicity forward of market-moving occasions.
CME Group will be a part of a variety of exchanges that already supply ethereum choices contracts together with Deribit, Okex, Bit.com, and Huobi. In July there was $11.38 billion in ether options quantity with Deribit commanding $10.86 billion out of all 4 exchanges that checklist ETH choices. The market share of ether options open interest can be dominated by Deribit, compared to open curiosity figures related to Huobi, Okex, and Bit.com.
In phrases of bitcoin choices, Deribit additionally outshines CME as CME Group is the second largest when it comes to bitcoin choices open curiosity with $441 million recorded on August 17. In the identical style, CME is the third largest when it comes to bitcoin choices quantity whereas Deribit takes the lead. Okex manages to seize a contact extra quantity so far as bitcoin choices are involved.
With the brand new CME ether choices, TP ICAP Digital Assets and Akuna Capital are supporting CME’s ether choices roll out. TP ICAP Digital Assets is happy to help CME Group within the rollout of its full-sized Ether choices contract,” TP ICAP’s head of brokering Sam Newman remarked throughout the announcement. “This larger-sized Ether possibility, in tandem with the already fashionable Micro Ether possibility, has been eagerly awaited by TP ICAP’s clients.”
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