Popular derivatives exchange CME Group has revealed it’s looking to launch options on its bitcoin futures products in January 2020, as long as it gets a green light from regulators.
As reported, the CME had earlier this year noted that, subject to regulatory approval, it was looking to launch options on its BTC futures in the first quarter of next year, but now detailed it’s looking to see options go live on January 13.
According to a notice published on the Chicago-based exchange’s website, Tm McCourt, the trading platform’s global head of equity index and alternative investments products, said that since launch of bitcoin futures in late 2017 its clients have been expressing “growing interest in options as another way to hedge and trade in these markets.” He added:
We have worked closely with clients and the industry to establish a robust and increasingly liquid underlying futures market here at CME Group, and we believe Bitcoin options will now offer our customers greater precision and flexibility to manage their risk.
The CME had already detailed each options contract will be based on one bitcoin futures contract, which itself is comprised of five bitcoin. The BTC options will be quoted in U.S. dollars per BTC, with a tick size of $25.
The exchange has also doubled down on investors’ interest in bitcoin futures growing, noting its average daily volume so far this year was of 6,500 contracts, which means it traded on average the equivalent of 32,500 BTC ($282 million) a day. It has over 3,500 individual accounts registered to trade the product, with nearly half being outside the United States.