An article to understand CME Group's micro-Ethereum futures MET

This article comes fromcmegroup & cointelegraph, original author: Helen Partz

Odaily Translator |

Odaily Translator |

After announcing the launch of micro bitcoin futures in April this year, the Chicago Mercantile Exchange said on the evening of November 2 that it plans to launch a similar micro ether futures contract - Micro Ether Futures (MET), which has a size of 0.1 ETH and aims to Provides new exposure to Ethereum for institutional traders and individual transactions, and has better risk management advantages. However, this product still needs to wait for regulatory approval. If all goes well, it is expected to go live on December 6, 2021 and become the fourth encrypted derivative product launched by CME Group (the other three are bitcoin futures). , Ethereum Futures, and Micro Bitcoin Futures).

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What are Micro Ether Futures?

• According to the official information of CME Group, the size of Micro Ether Futures is one-tenth of 1 ETH. Due to its small size, it is possible to manage Ethereum exposure in an efficient and economical way, and then to be able to Further optimize investors' trading strategies. Not only that, the small scale of Micro Ether Futures also means that the transaction fees are relatively low, but they can still enjoy the same functions and services as large Ethereum futures, so no matter whether the trader is a "big trader" or a "small trader", Both can use the same level to manage the risk of Ethereum, and the advantages of investment diversity can also be improved.0.10 ether

• Contract size:Transaction time and place:

• CME Globex Sunday-Friday 6:00 pm - 5:00 pm ET (5:00 pm - 4:00 pm CST), with a daily 60-minute break beginning at 5:00 pm ET (4:00 pm CST) :00); ClearPort: 6:00 pm ET Sunday to 6:45 pm ET Sunday through Friday (5:00 pm to 5:45 pm Central Time), and 6:45 pm ET to Monday through Thursday There is a 15-minute maintenance window between 7:00 (5:45 PM - 6:00 PM Central Time).Minimum Price Fluctuation:

• Outrights $0.50 per ether = $0.05 per contract：CME Globex: MET、CME ClearPort: MET、Clearing: MET、BTIC: MRB

• Product Codemeans of transaction:

• Financial settlementListing cycle:

• Monthly contracts listed for 6 consecutive months and 2 additional "December monthly contracts". If the "Dec Monthly Contract" is included in the monthly contracts listed for 6 consecutive months, only 1 additional "Dec Monthly Contract" will be listed.Final liquidation:

• Cash settlement is carried out with reference to the final settlement price, using the CME CF Ether-Dollar Reference Rate reference rate on the last trading day.The trading of Micro Ether Futures will be terminated at 4:00 pm on the last Friday of London time. The time is based on the business day of London or the United States. One London or US business day ends.

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Features and Benefits

CME Group officially listed four functions and advantages of Micro Ether Futures, namely:

1. Support Ethereum ETH exposure fine-tuning

Compared with the "larger" Ethereum futures, the contract transaction size supported by Micro Ether Futures is about 1/500, so it can improve the precision of investors' trading strategies, and it can also support gradual increase or decrease of positions more conveniently.

2. Enjoy more transparent futures price discovery

CME Group is a regulated trading platform where all participants see the same prices and quotes for contracts settled at the CME CF Ether-USD reference exchange 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 benefit from the efficiency and potential cost savings of CME Group Futures.

4. Explore a variety of trading methods

Like Ether Futures, Bitcoin Futures and Options, and Micro Bitcoin Futures, Micro Ether Futures can also be traded electronically through CME Group's CME Globex, bilaterally through block trades and EFRPs, or using index close basis trades (BTIC) transactions.

Tim McCourt, Global Head of Equity Indices and Alternative Investment Products at CME Group, said:

“Since the launch of Ether futures in February, we have seen a steady increase in contract liquidity, especially from institutional investors. At the same time, the price of ETH has more than doubled since the launch of these contracts, creating an appetite for micro-contracts in the market.” The demand also promotes this market to be more easily accepted by a wider range of participants. Micro Ethereum futures will provide traders with more choices and precision, and at the same time allow them to obtain transparent, standardized and efficient services from CME Group .”