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First CBOE Bitcoin Futures Reaches Settlement Cboe Global Markets (Cboe) announced the settlement of January expiry Cboe bitcoin (XBT) futures. The settlement price was $10,900.00, as determined by the 4:00 p.m. ET Gemini1 Exchange bitcoin auction. Cboe XBT futures, launched on December 10, 2017, and a total of over 124,000 contracts have traded across expiries since, representing a notional value of over $1.5 billion. The contracts, which are cash-settled, were specifically designed to allow participants to implement straightforward trading strategies through settlement to a single, tradable auction price as calculated by Gemini.
LCH Reports Record Year as FX Stands Out Clearing house LCH has announced record volumes across multiple clearing services in 2017, with FX leading the way by registering the greatest pace of growth across established products. The firm says its equities, fixed income, and OTC derivatives clearing services all surpassed previous years’ clearing activity, with growth driven by the roll-out of new products, effects of regulatory change and the onboarding of new customers across the world. LCH’s FX derivatives clearing service, ForexClear, delivered very strong growth in 2017.
Year-End Volumes Showing MoM Dip Thomson Reuters and Singapore Exchange have today released year-end FX trading volumes, which each show year-end dips from the previous month. TR reports total average daily volume of foreign exchange trading across its platforms in December totalled $392 billion, a dip from the $397 billion reported in November. Average daily volume for spot trading was $88 billion, down from $94 billion in November. This total reflects trading volumes on TR’s Matching and FXall in all transaction types, including spot, forwards, swaps, options and non-deliverable forwards.
Clearing Houses Granted MiFID Waiver UK and European regulators have granted clearinghouses exemptions from the requirement to provide their customers with more choice over where their trades are cleared. Under MiFID II, which went into effect this week, an open access rule means trades no longer have to be cleared through the same exchange group that handled the execution. The regulation says a European Union central counterparty or trading venue may apply to its local authority for a transitional arrangement in relation to exchange-traded derivatives, under which the open access requirements of MiFIR would not apply until July 2020.
LMAX Global Launched as Group Prepares for MiFID II LMAX Exchange Group has completed the transition of its MTF and broker businesses into two distinct FCA regulated entities to meet the regulatory changes under MiFID II, under which MTF and broker businesses must be operated as two distinct legal entities as an MTF operator is not allowed to execute client orders against proprietary capital or to engage in matched principal trading on its own MTF. In accordance with the regulatory changes, LMAX has rolled the part of its business into a new FCA regulated broker called LMAX Global.
Trading Begins in CME Bitcoin Futures CME bitcoin cash-settled futures contracts began trading on Sunday under the ticker “BTC”. The opening price for the January contract was $20,650, more than $1,150 over the last price on CME’s reference rate. However, by midday Monday the price had fallen to $18,920 and by 5pm EST the contract was trading at $19,500. The bitcoin spot market was at $18,700 at the same point in time. In total, data from the CME showed that 1,088 bitcoin futures contracts had traded by 5pm EST Monday.
Cboe Adds FX, Bitcoin to Data Offering Cboe Global Markets’ Data Shop has added historical spot foreign exchange and bitcoin data from Cboe FX to its range of offerings. The exchange group says that market participants and academics can back-test, analyse, and have the potential to increase trading opportunities, using the data, which includes TOP, which provides top-of-book data on currency pairs, including the quote time, bid price, bid quantity, offer price and offered quantity. Also available is Snapshot, which provides a look at the depth of book data at intervals throughout the trading day; and Cboe FX Tape.
Sustaining the Momentum Since launching its initial suite of FX products four years ago, SGX has reported consistent growth in this business segment. But can the exchange sustain the momentum going forward? Reporting from Asia, Galen Stops takes a look. Back in November 2013, Singapore Exchange (SGX) went live with trading for six deliverable and non-deliverable currency pairs: AUD/USD, AUD/JPY, USD/SGD, INR/USD, KRW/USD and KRW/JPY. As Profit & Loss noted at the time, the aim was clearly to establish SGX as the major hub for Asian currency futures trading. Fast forward four years and it appears that the exchange is well on its way to achieving this ambition, with the star performers in its FX suite being the INR/USD and USD/CNH contracts, the latter of which was launched in 2014.
CBOE Claims Successful Bitcoin Futures Launch CBOE Global Markets (CBOE) has issued a release hailing the first day of trading on its new and highly anticipated bitcoin futures contract as a successful launch. “XBT futures posted a strong start in the global trading hours, which began as planned at 5:00 pm CT on Sunday, December 10, 2017,” says CBOE in the release. The first full day of trading continues today, December 11. At 5:00 pm CT on Sunday, XBT futures opened at $15,000 and 890 contracts were traded by 7:15 pm CT.
FX Futures Have “A Bright Future”: Greenwich Associates A study published by Greenwich Associates looking at the costs associated with trading FX futures and cash OTC FX products argues that some buy side traders can achieve “significant” savings by using futures over cash. The firm says it employed a proprietary quantitative model, which calculates the cost of opening, maintaining and closing out a position. To validate key inputs into the model and gather feedback on current demand and pricing, Greenwich says it spoke with 51 FX traders on the buy and sell side.