The Cboe intends to change the way it defines the price for bitcoin futures contracts, a move that comes just months after the exchange operator first debuted its inaugural cryptocurrency product.
CFE believes that the impact of the amendment will be beneficial to the public and market participants.
Managing director, CBOE Future Exchange (CFE)
In a new letter to the Commodity Futures Trading Commission (CFTC) dated April 17, CBOE Future Exchange (CFE) managing director Matthew McFarland announced a proposed rule amendment that would lower the minimum increment on its futures contracts from 10 points (worth $10) to 5 points (worth $5) sometime on or after May 1.
The amendment would apply to single leg transactions, meaning those involving only one contract, and not spread trades, which require an investor to buy and sell two different contracts simultaneously. According to the letter, spread trades currently have a minimum increment of 0.01 points ($0.01).
The decision to make this change was supported by data the company collected since its futures contracts launched in December, McFarland said. He also added that CFE intends to continue to evaluate its experience with the trading in XBT futures and may determine to make future changes relating to XBT futures in light of that experience.