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Nakamoto shallots
Nakamoto shallots
, Odaily is authorized to publish.
On Tuesday (November 12), local time, CME Group (CME) announced that it will launch Bitcoin options on January 13, 2020. According to reports, CME’s implementation of bitcoin options is to help institutions and professional traders manage bitcoin spot risk exposures and hedge bitcoin futures positions in a regulated trading environment. And this is another giant in the current cryptocurrency trading market that has clarified its short-term plan for the layout of the options market.
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About half a month ago, Bakkt has officially announced that it will launch a regulated bitcoin options contract on December 9 this year. Bakkt’s official tweet revealed that the Bakkt bitcoin options contract will be based on the benchmark Bakkt monthly bitcoin futures contract. , representing another important step in developing this asset class for institutional investors.
And some cryptocurrency spot trading platforms, including Bitfinex and Binance, have also put the promotion of options products at a key position in their schedules in recent months. On the evening of yesterday (November 12) local time, Paolo Ardoino, chief technology officer of Bitfinex and Tether, revealed in an interview with the media that Bitfinex plans to provide options as early as the first quarter of 2020. Compliant perpetual swaps and basket futures trading are coming soon.
In early September, Binance officially announced the acquisition of JEX, a digital currency derivatives trading platform. JEX will join the Binance ecosystem as Binance JEX, focusing on further building the crypto asset derivatives market, and providing Binance users with professional services including futures contracts, options and other derivative products.
Xu Kun, vice president of OK Strategy, also expressed on social media on October 11 that the derivatives market space in the traditional financial market is more than ten times that of the spot market. Like digital currencies, the future derivatives space is very high. At the same time, she also revealed that, OKEx's option products are currently under development.
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However, in the process of reviewing and observing some representative cryptocurrency option products, the author found that although more and more top exchanges have begun to deploy, public opinion and media mentions of cryptocurrency option products and The heat of discussion is also rising rapidly, but it seems that these voices have not been transformed into actual "market heat".
Take the bitcoin options product officially opened to all users by the bitcoin derivatives provider LedgerX in early August this year as an example. Judging from the current official website data, the bid-ask spread of this product is quite obvious, and the number of orders is very limited. As a result, the transaction frequency is quite low and the liquidity is very bad.
JEX, which was acquired by Binance, was almost the first choice for domestic investors and most retail investors around the world to participate in cryptocurrency options trading, but the liquidity of the exchange's main options products is also not optimistic.
Take the following picture as an example. At present, the monthly BTC options contract that expires at the end of this month takes an average of about three minutes to complete a transaction, and the number of transactions is relatively limited.
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So the question is, why is such an early market segment triggered by giants?
In order to better answer this question, maybe we can jump out of the young market of cryptocurrency and look at it from the perspective of traditional financial markets.
The birth of options can be traced back to the European and American markets in the 18th century. Similar to the current cryptocurrency options trading market, option products in the traditional financial market have been mistaken for a speculative market lacking actual economic functions in the early days of its birth. After the establishment of the US Securities and Exchange Commission (SEC) in 1934, in response to the chaotic situation of a large number of speculations in the option market at that time, it even proposed to Congress to ban option trading. In 1974, the SEC also held a public hearing. The answer was to discuss whether options are beneficial to the economy and the public interest, and what impact listed options will have on the investment habits of the investing public. However, at this hearing, it was finally concluded that options are beneficial to financial markets and economic development.
However, this hearing did not completely dispel the doubts of the market. Questions and debates about options continued into the 1980s. It was not until 1985 that the U.S. Department of the Treasury, CFTC, SEC and the Federal Reserve jointly released a report titled "Research on the Impact of Futures and Option Trading on the Economy", that all walks of life in the United States gradually reached a consensus on the functions of financial futures and option products, and Really realized the significance of options trading to the financial market and even economic development.
The report "Research on the Impact of Futures and Options Trading on the Economy" pointed out that financial futures and options markets can provide market functions such as risk transfer and enhanced liquidity, which is conducive to improving economic efficiency and real capital formation. Financial futures and options trading will not reduce financial The total supply of funds in the market; trading activities in the futures and options markets have not increased the volatility of spot market prices; interest rate futures and options will not have a significant impact on monetary policy.
