The block trade on Sunday, February 23, was between Cumberland DRW and Galaxy.
Derivatives exchanges company, CME Group, has completed its first transaction via its “new financially settled options on Bitcoin Friday futures” between Cumberland DRW and Galaxy and cleared by Marex, officials say. The block trade took place on Sunday, February 23.
The CME has launched financially settled options on Bitcoin Friday futures to complement its existing suite of physically-settled options on Bitcoin, Ether, Micro Bitcoin, and Micro Ether futures, “providing additional risk management flexibility to investors,” according to the announcement.
“Innovative products like this give users increased liquidity, flexibility, and optionality to engage in the rapidly expanding intersection between traditional and crypto markets,” says Roman Makarov, head of options trading at Cumberland DRW, in a prepared statement. “It’s exciting to see trusted exchanges like CME Group continue to support this ecosystem through relevant product launches, and Cumberland DRW is proud to be a longstanding partner in that journey.”
The introduction of options on Bitcoin Friday Futures “is a valuable expansion of their product suite,” says Mike Harvey, head of franchise trading at Galaxy, in a prepared statement. “The contracts’ low notional value makes them accessible to a broad range of market participants, while the 4 p.m. New York settlement time offers added precision for developing and executing trading strategies.”
The new contracts “will sharpen visibility into short-term volatility, empowering traders with a precise risk management tool,” says Brooks Dudley, head of digital assets sales at Marex Capital Markets, in a statement. “It’s a proud milestone in our mission to deliver cutting-edge, secure clearing solutions to the institutional digital asset market.”
For more information on these products, visit: www.cmegroup.com/bff
CME Group helps clients trade futures, options, cash, and over-the-counter markets, optimize portfolios, and analyze data, officials say. CME Group exchanges offer global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals.
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