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Ethereum Futures Watch: The CME Group says it measures the interest of the customer


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Chicago-based Derivative Exchange The CME Group announced that it was planning to measure the interest of customers for a term product ethereum now that it has launched a price index and a benchmark for the ether, the second cryptocurrency in the world.

Speaking with Bloomberg on the sidelines of an industrial conference in New York, Tim McCourt, head of CME's equity products, said the foreign exchange operator will test the waters to see if the demand is enough to justify the creation of a future ethereal. product, although the company does not yet have the intention of listing the contracts that follow the price of the Ether.

"We will continue to evaluate with them the demand for futures contracts," he said. "There is no plan to trade to launch one right now."

As reported by CCN, CME unveiled on Monday its new Ether reference rate and its real-time benchmark, each of them providing audited price data for ETH transaction pairs. / USD. The data is aggregated from Kraken and Bitstamp cryptocurrency exchanges and then calculated by Crypto Facilities, an exchange of British Cryptocurrency derivatives.

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CME Group recently launched an ether price benchmark, widely regarded as the first step in the eventual creation of a term product.

McCourt added that CME had identified a "clear demand" for physically-settled cryptocurrency futures. At present, CME and its counterparts in Chicago CBOE offer linked futures at the price of bitcoin but settled in cash. – This is not a cryptocurrency – due to various conservation and regulatory concerns. There is a clear demand on the market: people would appreciate this innovation, "he said, adding:

"With physical delivery, you have to know what to do with Bitcoin, are you going the way of the guard, are you going the private way, these are very interesting questions and we are looking forward to some of these solutions prevail on the market, but at this moment the community is better served by a financial contract. "

Elsewhere in the interview, McCourt replied that the launch of CME's bitcoin futures triggered the recent bear market. Noting that bitcoin peaked at a historic high on December 17 – the same day as CME-listed bitcoin futures – US Federal Reserve researchers have argued that the bear market was the result of traders' short positions on contracts. futures.

McCourt, however, said that although the volume of futures has increased significantly since the opening of markets, it was far too small in December to be responsible for a full-fledged sale.

"If you look at the notional that is trading, it's hard to say that the futures were responsible for that sale given the relatively small percentage of the Bitcoin trade contribution," he said.

Pictures of Shutterstock.

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