CME Group withdrew approximately $50 million in notional value during the first weekend of its new 24/7 crypto futures and options trading service.
More than 7,200 crypto futures and options contracts have changed trading partners since 24-hour trading began on May 29, according to an official update from CME Group. The launch marks the first time that traders can access regulated crypto derivatives on CME’s platform throughout the weekend.
CME Cryptocurrency Moves Regulated Cryptocurrency Trading to Weekends
The new schedule will bring CME’s crypto derivatives business closer to the non-stop structure of the digital asset market. Prior to the rollout, CME’s crypto futures and options followed a more traditional market schedule, while the crypto spot exchange continued to operate on weekends and holidays.
CME said the first weekend included activity from both institutional and retail market participants. The exchange said the change will give traders more time to manage their exposure if crypto prices fluctuate outside of normal financial market hours.
Tim McCourt, global head of equities, currencies and alternative products at CME Group, said the company is responding to the continued demand for liquidity in regulated crypto products. He said CME’s move will help connect traditional regulated venues with daily traded crypto markets.
McCourt also noted that the crypto derivatives market has changed rapidly since CME introduced the first Bitcoin futures contract in 2017. In his view, an always-on model is the next step for a market that now requires access to continuous price discovery and risk management.
Businesses cite demand for continuous access
Companies involved in the launch said the weekend rollout is in response to growing customer demand for regulated crypto products outside of normal trading hours.
Robinhood Markets said the new schedule will allow customers to trade regulated futures throughout the week. Ripple Prime said institutional investors now expect cryptocurrency risk management tools to be available around the clock.
Wedbush Securities also said it has expanded its operations to support weekend trading. CME said weekend and holiday trades will receive a next business day trading day, and clearing, settlement and regulatory reporting will be processed the next business day.
Bitcoin volatility futures join our 24/7 lineup
CME also made Bitcoin volatility futures available under a new continuous trading model. The exchange says the product provides traders with exposure to Bitcoin’s expected 30-day implied volatility.
Unlike regular Bitcoin futures, volatility contracts do not focus on the direction of Bitcoin’s price. This will allow market participants to trade on changes in expected volatility, giving CME a new regulated product for managing crypto risk.
CFTC considers ongoing market risks
The announcement comes as U.S. regulators study how the ongoing market will impact exchanges, clearinghouses, brokers and customers.
Commodity Futures Trading Commission staff recently issued recommendations regarding 24/7 trading, clearing, and settlement. The recommendations called on market operators and intermediaries to consider market surveillance, liquidity, staffing, risk management, clearing operations, and customer protection.
CME’s first weekend numbers show early use of regulated cryptocurrency derivatives beyond weekday sessions. The exchange’s next test will be whether trading activity can remain stable as participants around the world adjust to new schedules.
