13 September, 2019
The Chicago Mercantile Exchange Group has expressed intentions to approve the opening of larger positions on its bitcoin futures market. The application was submitted to the US CFTC yesterday.
According to the note of intent, CME is going to raise the contract limit from 1,000 to 2,000 per month for every investor.
Every contract accounts for 5 BTC, so positions be limited at $100 million at the effective exchange rate.
At the same time, daily average trading amounts to 7,100 contracts per day, though the company see good potential for an upturn citing high interest in the futures market.
For now, the next step rests with CFTC. If the regulator makes a positive determination, the application will be approved and new limits will become effective beginning from September 30 covering October contracts.
CFTC also explained that positions are limited to restrain excessive speculations for any exchange commodity on which futures are based.
The CME representative stated that about 56 holders of large positions take part in bitcoin futures trading.