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CME Group plans to launch options for Ether futures before the merger

A new CME product is expected to be launched ahead of the long-awaited merger.
One of the largest derivatives markets, the Chicago Mercantile Exchange (CME), announced plans to launch options on Ether futures on September 12, subject to regulatory review.

The release of the new product comes as CME Group has recorded 1.8 million Ether futures trading so far.

With the highly anticipated Ethereum merger looming, Tim McCourt – the company’s global head of equities and forex products – said he has noted market participants’ demand to manage Ether’s price risk.

The CEO added in a statement:
“The launch of these new options contracts builds on the significant growth and deep liquidity that we have seen in existing Ethereum futures, with more than 1.8 million contracts traded to date.”
Notably, a significant portion of Ether options activity takes place via OTC desks.

On the other hand, the new CME Ether options are expected to provide clients with greater flexibility and additional “accuracy” for managing investor exposure to Ether prior to market moving events.
The derivatives market already offers Bitcoin options. It launched BTC futures in 2017 and introduced ETH futures four years later.

It also began offering small-volume Bitcoin and Ethereum options earlier this year, citing growing investor demand for these products.

Sam Newman, Head of Digital Asset Brokerage at TP ICAP, said he is supporting CME Group in launching a full-size Ether options contract,
“The larger ether option, along with the already popular Micro Ether option, is eagerly awaited by TP ICAP customers. With the upcoming integration of the Ethereum protocol, we expect this new decade to see huge interest from both traditional and local crypto clients.

SOURCE

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