CME Group, the world’s largest derivatives exchange, has announced plans to launch 24/7 crypto futures and options trading. This comes as institutional demand for crypto increases, and the move is significant because it would end the CME gaps, which typically occur over the weekend when the traditional markets are closed.
CME Group To Launch 24/7 Crypto Futures and Options Trading
According to a press release, the derivatives exchange will launch regulated 24/7 crypto futures and options markets starting on May 29, pending regulatory review. The exchange stated that its crypto futures and options will trade continuously on the CME Globex with at least a two-hour weekly maintenance period over the weekend.
Furthermore, all holiday or weekend trading from Friday evening through Sunday evening will have a trade date of the following business day. Meanwhile, the CME Group stated that clearing, settlement, and regulatory reporting will be processed on the following business day.
This development comes months after the exchange first revealed plans to launch 24/7 crypto futures trading amid rising institutional demand. It is worth noting that the exchange currently offers futures and options on Bitcoin, Ethereum, XRP, and Solana.
As CoinGape reported, the CME Group also recently launched ADA, LINK, and XLM futures earlier this month. Plans to launch 24/7 futures and options trading mean that institutional investors will soon be able to trade these crypto assets around the clock.
Client Demand For Risk Management In Crypto Is At An All-Time High
CME Group’s Global Head of Equities, FX, and Alternative Products, Tim McCourt, noted that client demand for risk management in the crypto market is at an all-time high (ATH). He further remarked that this drove a record $3 trillion in notional volume across their crypto futures and options last year.
McCourt added that providing 24/7 access to their regulated, transparent crypto products ensures that their clients can manage their exposure and trade with confidence at any time. Meanwhile, the exchange also highlighted how its crypto futures and options markets continue to reach record volumes this year despite the current downtrend for crypto prices.
The year-to-date (YTD) highlights include Average daily volume (ADV) of 407,200 contracts, representing a 46% increase year-over-year (YoY). Average daily open interest is 335,400 contracts, up 7% YoY, and futures ADV is 403,900 contracts, up 47% YoY.
Market commentator Shaun Edmondson described CME Group’s plans to launch 24/7 crypto futures trading as a “huge advancement.” He noted that this should stop the gaps that form on the weekend trades.