CME Group plans to increase limits on trading bitcoin futures

The CME Group exchange plans to increase limits on the trading of bitcoin futures. A statement was sent to the Commodity Futures Trading Commission (CFTC) on Thursday.

According to the document, CME proposes to raise the limit for one investor from 1,000 to 2,000 contracts per month. If we take into account the fact that there are 5 bitcoins in one contract, then, according to the current exchange rate, the limit will be about $ 50 million.

At the same time, only a small group of traders has capital that can reach the current limit. The average daily trading volume on the exchange is currently only 7,100 contracts, however, the company sees opportunities for the growth of the indicator associated with the “substantial adoption of the futures market and the analysis of the underlying bitcoin market”.

If the CFTC gives permission, the decision will enter into force on September 30 and will extend to the October contracts. As the regulator notes, such a practice of setting limits is needed to deter “excessive speculation” on any exchange product that is fundamental to futures.

“Limits are not required in markets where there is little or no chance of manipulation,” the CFTC website says.

CME claims that at present 56 holders of large positions are participating in the trading of bitcoin futures – a record number for this market. Since the beginning of the year, more than 1,200 new traders have appeared on the platform.