CME Group, the world’s largest derivatives marketplace, plans to commence 24/7 trading of its regulated cryptocurrency futures and options starting May 29. This move aims to meet the growing demand from institutional investors, enabling uninterrupted access to hedging and trading tools related to Bitcoin and other digital assets. The initiative reflects the increasing role of crypto derivatives in traditional financial markets, where professional investors seek a secure trading environment under clearing and oversight. CME’s cryptocurrency contracts operate under the U.S. regulatory framework, providing standardized settlement and reporting that differ from foreign exchanges. Under the new system, crypto futures and options will trade continuously except for a brief two-hour maintenance period each week, with holiday and weekend trades recorded on the next business day. Settlement, clearing, and regulatory reporting will also occur on the following business day. CME reported a record surge in crypto futures and options trading this year, with a 46% year-over-year volume increase and a 47% rise in futures specifically, signaling heightened institutional interest. This development comes as the crypto market seeks to adapt traditional financial structures to the always-open nature of spot trading. While CME acknowledges that continuous trading may not suit all markets, it sees greater benefits for crypto products by allowing investors to manage positions at any time, especially amid market volatility. CME Group operates across various asset classes including interest rates, equity indexes, foreign exchange, energy, agricultural commodities, and metals, and hosts one of the world’s largest clearinghouses that mitigates counterparty risk in derivatives markets. Pending regulatory approval, this new system could mark a significant shift in U.S. regulated crypto derivatives trading.
Source: bitcoinmagazine
