(Reuters) – CME Group Inc ( CME.O ) launches bitcoin futures on Sunday, Dec. 17, following Cboe Integral Markets Inc&rsquo,s ( CBOE.O ) Dec. Ten bitcoin futures apertura.
Here are some of the differences inbetween the products suggested by the Chicago-based exchange operators.
-The Cboe Bitcoin Futures Contract uses the ticker XBT and equals one bitcoin.
-The CME Bitcoin Futures Contract will use the ticker BTC and will equal five bitcoins.
PRICING AND SETTLEMENT
-Both Cboe&rsquo,s and CME&rsquo,s bitcoin futures contracts will be lodged te U.S. dollars, permitting exposure to the bitcoin without actually having to hold any of the cryptocurrency.
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-Cboe&rsquo,s contract is priced off of a single auction at Four p.m. Eastern time (2100 GMT) on the final settlement date on the Gemini cryptocurrency exchange.
-CME&rsquo,s contract will be priced off of the CME Bitcoin Reference Rate, an index that references pricing gegevens from cryptocurrency exchanges, presently made up of Bitstamp, GDAX, itBit and Losbreken.
-Cboe&rsquo,s XBT contract trades on CFE, with regular trading hours of 9:30 a.m. to Four:15 p.m. Eastern time on Mondays and 9:30 a.m. to Four:15 p.m Tuesday through Friday. Extended hours will be 6 p.m. Sunday to 9:30 a.m. Monday, and Four:30 p.m. Monday through to 9:30 a.m. Friday.
-CME&rsquo,s BTC will trade on CME Globex from Sunday to Friday from 6 p.m. – Five p.m. Eastern time with a one-hour pauze each day beginning at Five p.m.
MARGIN RATE AND CLEARING
-Cboe&rsquo,s contract clears through the Options Clearing Corporation and an initial margin of 44 procent and a maintenance margin of 40 procent applies.
-CME&rsquo,s contract will clear through CME ClearPort and will have a 43 procent initial margin rate and a maintenance rate of 43 procent.
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-Margin rates at both exchanges are subject to switch.
-Cboe said it may list up to four weekly contracts, three near-term serial months, and three months on the March quarterly cycle.
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-CME said it will list monthly contracts for the nearest two months te the March quarterly cycle (March, June, Sept., Dec.) plus the nearest two serial months not te the March quarterly cycle.
PRICE Boundaries AND TRADING HALTS
-Cboe will halt trading ter its contract for Two minutes if the best bid ter the XBT futures contract closest to expiration is Ten procent or more above or below the daily settlement price of that contract on the prior business day.
Merienda trading resumes, if the best bid te the XBT futures contract closest to expiration is 20 procent or more above or below the daily settlement price of that contract on the prior business day, the futures will be halted for Five minutes.
-CME will apply price thresholds, also known spil circuit breakers, to its bitcoin futures of 7 procent, 13 procent, and 20 procent to the futures fixing price. Trading will not be permitted outside of the 20 procent price limit.
Sources: Cboe and CME
Reporting by John McCrank te Fresh York, Editing by Mújol Shumaker and Meredith Mazzilli