TradeStation, a Monex Group company and award-winning* online broker-dealer and futures commission merchant, today announced that its futures clients can trade the new Bitcoin futures contract offered by CME Group (CME) effective today, December 17.
CME is the second major U.S. exchange to offer trading in Bitcoin futures. On December 10, TradeStation supported the launch of the first Bitcoin futures offering from a major U.S. exchange, the XBT contract from Cboe Global Markets, Inc. (Cboe), traded on its Cboe Futures Exchange (CFE). Trading in both the CFE and CME Bitcoin futures contracts is available to eligible current and newly funded TradeStation futures account holders.
The new CME contract (ticker symbol BTC) will be cash-settled in U.S. dollars, based on the CME CF Bitcoin Reference Rate (BRR), which serves as a once-a-day reference rate of the U.S. dollar price of Bitcoin. CME Group and Crypto Facilities Ltd. calculate and publish the BRR, which aggregates the trade flow of major Bitcoin spot exchanges during a calculation window into the U.S. dollar price of one Bitcoin as of 4:00 p.m. London (UK) time. TradeStation earlier this year added support for real-time market data for CME’s two Bitcoin indices, the BRR and the CME CF Bitcoin Real Time Index.
“We believe that CME’s launch of the new Bitcoin futures contract represents a major milestone in the development of cryptocurrency derivatives markets that appear to be more fair and transparent than trading the underlying cryptocurrency,” said John Bartleman, President of TradeStation Group, Inc., the parent company of TradeStation. “We’re excited to support CME’s new offering from the first day of trading and to extend to TradeStation clients the opportunity to trade this emerging market.”
Trading in CFE and CME Bitcoin futures is the latest addition to TradeStation’s enhanced futures offering. Earlier this year, the company introduced simplified low-cost futures pricing of $ 1.50 per contract, per side (plus exchange execution, clearing and regulatory fees), with no monthly software fees and free premium analysis tools and real-time market data. TradeStation subsequently added flexible overnight margin requirements and a futures interest-sharing program that generates interest on account holders’ average daily cash balance at a rate many times higher than that of other brokers.