Feature Highlight: Economic Calendar

To access QuikStrike’s Economic Calendar, login to QuikStrike, click on QuikTools in the upper right hand corner and click on Economic Calendar:

 

This will bring up the economic calendar. You can change the timeframe in the top-center of the window. Available options are Today, This Week, Next Week, One Week, and One Month.

What Comes After Bitcoin Futures?

CBOE and CME are both listing Bitcoin futures products in the upcoming couple of weeks (see below for a few differences or go to our blog post for a more robust contract comparison and how to view bitcoin in QuikStrike). Established exchanges are better positioned to handle large volumes of trading like those that have presumable hobbled the major cryptocurrency exchanges today.

Financial market exchanges have the unenviable job of saving traders from themselves (by not allowing the financial ecosystem to take on undue risk that could cause a systemic market meltdown – ahem – Lehman/Bear/et al.) while trying to get enough market participants to trade their product(s) so that they have liquidity. Not too hot, and not too cold, but hot enough to earn profits from fees. Historically, only one exchange at a time has been able to effectively list any given product so we expect a dominant contract/exchange to emerge in the next year or so.

After the battle for bitcoin futures plays out, though, one can’t help but wonder what comes next? Here are some possibilities that we consider likely –

Medium Term:
– Options on futures (stay tuned for our bitcoin options analysis)
– Options on calendar spreads

Longer Term:
– E-mini contracts for CME (the original listing will be for 5 bitcoins)
– Weekly options
– Additional contracts in the term structure for the dominant exchange

CBOE vs. CME

Perhaps as a result of the distributed nature of cryptocurrencies, until now, bitcoins have traded on a multitude of cryptocurrency platforms of varying repute and quality forcing the more traditional exchanges to get creative with determining the “true” exchange rate of bitcoin.

The most important difference between the exchanges contracts will be how the price of bitcoin is determined. CBOE’s futures will be based on Gemini’s auction price for BTC/USD. Auctions take place daily at 3pm CT and endeavor to “foster moments of elevated liquidity.” Gemini was founded by the Winklevoss Twins – famous for suing Mark Zuckerberg over the creation of Facebook – who have been some of the most public, early advocates of bitcoin.

CME is taking a more democratic route using price and volume data from “a geographically diverse set of bitcoin trading venues” to “reflect global bitcoin trading activity in a representative and unbiased manner.” For bitcoin historians, their methodology is similar to the first CFTC approved index created by TeraExchange in 2014. The current constituent exchanges for the CME are the following:

What are your thoughts on cryptocurrencies? Just another bubble or the wave of the future? Drop us a line.

Bitcoin Futures: CBOE vs CME

The following table is a consolidation of the best information we have at the time of writing, please consult the relevant exchanges for official specifications and updates.

 

CBOE CME
Trading Starts 5pm CT
Sunday Dec 10th, 2017
5pm CT
Sunday Dec 17th, 2017
Ticker XBT BTC
Settlement Cash Settled Cash Settled
Price Quote Currency USD USD
Contract Size 1 Bitcoin 5 Bitcoins
Underlying Index Valuation Gemini Auction CME CF Bitcoin Real Time Index (BRTI)
Trading Hours 5pm CT Sunday – 3:15pm CT Friday

(closes at 2:45pm on final settlement date)

5pm CT Sunday – 4pm CT Friday
Weekday Trading Break 3:15pm – 3:30pm CT 5pm – 6pm CT
Contracts – Weekly Up to 4 None
Contracts – Serials (Monthly) 3 Serials 2 Serials
Contracts – Quarterly (IMM) 3 Monthlies 2 Monthlies
Minimim Price Interval 10.00 points ($10.00/contract) $5/bitcoin ($25/contract)
Spreads 0.01 points ($0.01/contract) $1/bitcoin ($5/contract)
Position Limits – Across All Expiries 5,000 contracts (5,000 bitcoins) net long or short in all futures contract expirations combined 5,000 contracts (25,000 bitcoins) in single months outside the spot month and in all months combined
 Position Limits – Front Contract 1,000 contracts (1,000 bitcoins) in the expiring futures contract, commencing at the start of trading 5 business days prior to final settlement date 1,000 contracts (5,000 bitcoins)
Maximum Order Size Unknown 100 contracts (Globex)
Trading Halt – 2 minute 10% up or down 7%, 13% up or down

(soft halt/monitoring period)

Trading Halt – 5 minute 20% up or down
Trading Halt – Hard Limit 20% up or down
Fees $0.25-$0.50 per contract, waived in Dec 2017 Unknown
Initial Margin 33% 35%
Other Restrictions Market orders will not be accepted (Only stop limit orders)
Additional Information CBOE Contract Specifications  CME Bitcoin FAQ

Bitcoin in QuikStrike

Did you know you can view Bitcoin in QuikStrike? Under the Benchmark Summary section click on “BRTI Chart” in the left hand navigation:

BRTI – CME CF Bitcoin Real Time Index

An intraday (updated continuously), USD denominated reference rate for Bitcoin transactions calculated from consolidated order book data rather than trade prices. Similar to a real-time index or spot price. Full methodology available here.

BRR – CME CF Bitcoin Reference Rate

An end-of-day, USD denominated reference rate for Bitcoin transactions based on data collected from various exchanges. Similar to a closing price. Full methodology available here.

 

Don’t have QuikStrike yet? Register here.