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My guess is that this is probably pretty meaningless. There are a few things going against them. - The CBOE and CME are both much larger futures exchanges and
by chollida1 9y ago
My guess is that this is probably pretty meaningless.
There are a few things going against them.
- The CBOE and CME are both much larger futures exchanges and are going to be offering futures first
- since you can't net out futures contracts from different exchanges this means they tend to become winner take all
> One way Nasdaq seeks to differentiate itself seems to be in the amount of data it uses for pricing the digital currency contracts. VanEck Associates Corp., which recently withdrew plans for a bitcoin exchange-traded fund, will supply the data used to price the contracts, pulling figures from more than 50 sources, according to the person.
This might be interesting as one of the things that everyone is worried about is price manipulation.
If you haven't thought about how futures work with respect to margin and marking at the end of the trading day you need to know that you can be required to deposit more money into your margin account if the futures trade moves against you on any given day.
This means the marking price is very important and lost of institutional money is worried that the exchanges are easy to manipulate.
see: http://openmarkets.cmegroup.com/3785/understanding-margin-changes http://openmarkets.cmegroup.com/3785/understanding-margin-ch...
> Nasdaq’s product will reinvest proceeds from the spin-off back into the original bitcoin in a way meant to make the process more seamless for traders, the person said.
This is awesome,, right now the CBOE and CME both have punted on the question of forks saying, they'll have a best efforts to figure it out.
- Kiro 9y agoOne difference is that NASDAQ is a name everyone in the world knows while CME is fairly anonymous. Yes, I know they are bigger but I can assure you that if you ask random people in my country most would know NASDAQ while very few would know CME. Seeing NASDAQ is adding it will add to the hype.
- hendzen 9y ago"CME is fairly anonymous". What planet do you live on?
- igorgue 9y ago>> "Yes, I know they are bigger but I can assure you that if you ask random people in my country most would know NASDAQ while very few would know CME" Just go out to a target and ask 5 people... Unless you live on mars already.
- ashark 9y agoI imagine I'd get three "CME? Dunno WTF that is", "How about Chicago Mercantile Exchange?", "Oh yeah, I recognize that from the boring parts of morning news updates on the radio. They do something with soy beans, right?" and two "yeah, still dunno. Is it a farmer's market?" Midwestern US city (not Chicago).
- sreeramb93 9y agoIndian here, never heard of CME before. NASDAQ yes.
- whatok 9y agoRandom people in your country are not the target audience for this.
- jacobush 9y ago... target of bitcoin hype tho?
- runeks 9y agoCME is the largest options and futures contracts exchange in the world... > Seeing NASDAQ is adding it will add to the hype. Alright, I see your point. You’re considering how this announcement will affect the bitcoin price.
- westurner 9y ago> One way Nasdaq seeks to differentiate itself seems to be in the amount of data it uses for pricing the digital currency contracts. VanEck Associates Corp., which recently withdrew plans for a bitcoin exchange-traded fund, will supply the data used to price the contracts, pulling figures from more than 50 sources, according to the person. That appears to exceed CME’s plan to use four sources, and Cboe’s one. Nasdaq’s contracts will be cleared by Options Clearing Corp., the person said. BitMEX bitcoin futures are already online. IDK how many price sources they pull? Aren't there a few other companies already selling Bitcoin futures?
- josh2600 9y agoIn general, when the CME enters a market for futures, they take all of the air out of the room. I don't think it's realistic to believe NASDAQ can compete with them.