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CME micro Ethereum futures MET operation and its advantages

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MET, a miniature Ethereum futures contract, will further expand the range of crypto derivatives

Original title: "An Understanding of CME's Micro Ethereum Futures MET"

原文作者：Helen Partz

原文编译：Moni，Odaily星球日报

Cme, one of the world's largest derivatives markets, continues to expand its cryptocurrency derivatives offerings.

After announcing the launch of Micro Bitcoin Futures in April, the CME said late On Nov. 2 that it plans to launch a similar Micro Ethereum Futures contract, Micro Ether Futures (MET), with a size of 0.1& NBSP. ETH is designed to provide institutional traders and individuals with new exposure to Ethereum, with better risk management benefits.

However, the product is still awaiting regulatory approval, and if all goes well, cME is expected to launch its fourth crypto derivative product on December 6, 2021 (the others are Bitcoin futures, Ethereum futures and micro Bitcoin futures).

What is Micro Ether Futures?

According to cME official information, the Micro Ether Futures contract is one-tenth the size of one ETH. Due to its small size, it can be an efficient and economical way to manage the exposure of Ethereum, which can further optimize the trading strategy of investors. Not only that, Micro Mr Futures smaller means trading gold is relatively low, but still can enjoy the same Ethernet fang Futures functions and services, therefore regardless of traders is a "big" or "small", can use the same level to manage the risk of etheric fang, investment diversity advantage can also be improved.

Contract Size:0.10 Mr

Trading time and place:CME Globex 6:00-5:00pm EST (5:00-4:00pm CENTRAL), with a 60-minute break starting at 5:00pm EST (4:00pm Central) every day; ClearPort: There is a 15-minute maintenance window between 6:45 and 7:00 p.m. Eastern Time Monday through Thursday (5:45 to 6:00 p.m. Central time).

Minimum price fluctuation:Outrights $0.50 per ether = $0.05 per contract

Product Code:CME Globex: MET, CME ClearPort: MET, Clearing: MET, BTIC: MRB

Transaction method:Financial settlement

Marketing cycle:Monthly contracts listed for 6 consecutive months and 2 additional "December monthly contracts". If the monthly contract listed for 6 consecutive months contains the "December monthly contract", only 1 additional "December monthly contract" will be listed.

Final reckoning:Reference final settlement price to cash settlement, using the last trading day CME CF Ether-Dollar Reference Rate Reference Rate.

Termination of Transaction:Micro Ethereum futures & NBSP; Micro Ether Futures Closing at 4.00pm London time on the last Friday or business day in London or the United States or on the preceding London or US business day if the last Friday of the month is not a Business day in London or the United States.

Features and Advantages

Cme officially lists four functions and advantages of Micro Ether Futures:

1. Support fine tuning of Ethereum ETH exposure

Compared to the "larger" Ethereum Futures, Micro Ether Futures can support contracts that trade about 1/500th the size, thus improving the precision of investors' trading strategies and making it easier to gradually increase or decrease positions.

2. Enjoy more transparent futures price discovery

CME is a regulated trading platform where all participants see the same prices and quotes for contracts settled at the CME CF Ether dollar reference rate, so there is relatively high transparency.

3. Save potential margin costs

Like Ether Futures, Bitcoin Futures and options, and Micro Bitcoin Futures, Micro Ether Futures can also enjoy cME Futures with high efficiency and potential margin cost savings.

4. Explore a variety of trading methods

Like Ether Futures, Bitcoin Futures and options, and Micro Bitcoin Futures, Micro Ether Futures can be traded electronically via CME Globex, bilaterally via block trades and EFRP, or using index closing basis trading (BTIC).

Tim McCourt, global head of equity indices and alternative investment products at CME, said:

"Since the launch of Ether futures in February, we have seen a steady increase in contract liquidity, particularly among institutional investors. At the same time, ETH prices have more than doubled since the launch of these contracts, creating demand for micro-contracts and making the market more accessible to a wider range of participants. "Micro Ethereum futures will provide traders with greater choice and accuracy, while also providing them with cME's transparent, standardized and efficient services."

In fact, cME's launch of "micro" cryptocurrency derivatives has been a success, with more than 2.7 million contracts now traded since the launch of micro bitcoin futures in May, according to disclosed data. In addition, more than 675,500 ethereum futures contracts were traded (equivalent to about 33.8 million ETH). Not only that, cME already has more than 20 "micro" products, and more than 1 billion contracts have been traded so far.