CME Files to Double Monthly Bitcoin Futures Open Position Limit to 10K BTC

As reported by CoinDesk, “The Chicago Mercantile Exchange (CME Group) wants to let bitcoin futures traders hold a greater number of open positions at one time.

“CME announced its intention to increase in the so-called spot month position limit for its bitcoin futures contracts in a letter to the U.S. Commodity Futures Trading Commission (CFTC) Thursday.

“The limit would jump from 1,000 contracts per spot month to 2,000 for any single investor. Since each contract is for five bitcoin, the change means a trader’s maximum exposure would double from 5,000 bitcoin (worth about $50 million at current prices) to 2,000 contracts (10,000 bitcoin, or $100 million).

“To be sure, few traders if any holding that many open positions right now, given that the exchange saw the number of open interest contracts reach an all-time high around 6,100 in July.

“But the company sees room for this market to grow, and is seeking to increase these limits ‘based on the significant growth and acceptance of our financially-settled CME Bitcoin futures markets, as well as our analysis of the underlying bitcoin market,’ said the spokesperson.

“If the CFTC does not object to the plan, the move will take effect on Sept. 30 for the October 2019 contract, wrote CME managing director and chief regulatory counsel Christopher Bowen in the letter.”

Continue to read the full story at CoinDesk.

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