Main to remember
- CME Group will offer XRP term contracts from May 19, awaiting regulatory review.
- The request for SEC and Ripple has been refused, now the penalty of $ 125 million.
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The Chicago Mercantile Exchange (CME) group, the world’s leading derivative market, is expected to launch XRP and micro XRP a term contracts on Monday, May 19, aimed at extending its suite of regulated cryptographic derivatives to include the fourth digital active in market capitalization.
The contracts will be available to negotiate on CME Globex and cleaned via CME Clearport, with access starting on Sunday evening May 18, for participants after working hours, as indicated in CME’s opinion.
Each XRP-term contract will represent 50,000 XRP, while the micro XRP term contracts will represent 2,500 XRP, both in cash on the basis of the reference rate CF CF XRP-DOLLAR. The costs vary depending on the type and place of the participants.
CME Group confirmed in April that it planned to launch its first XRP term contracts, pending regulatory approval, after leaks earlier in January which alluded to deployment.
“The interest in XRP and its large underlying book (XRPL) has regularly increased as the institutional and retail adoption of the network increases,” said Giovanni Vicioso, a global manager of cryptocurrency products at CME Group, in an April press release. “We are pleased to launch these new contracts to provide a set of economical capital tools to support investment and customer coverage strategies.”
XRP products will expand the range of existing CME cryptographic derivatives, which already includes contracts related to Bitcoin, Ethereum and Solana. CME has just made his debut in Solana Futures in March.
The trading of cryptographic derivatives of the company’s first quarter saw the daily volume increase from 141% in annual shift to 198,000 contracts, or 11.3 billion dollars in notional terms, while open interest increased by 83% to 251,000 contracts worth $ 21.8 billion.
The upcoming deployment is efforts to settle the long case of the dry against Ripple, the company behind XRP, stall in court.
On Thursday, the American district judge Analisa Torres, the federal judge chairing the case on Thursday, refused a joint request from both parties to approve a regulation which would have reduced the Civil Ripple sanction by $ 125 million to $ 50 million.
The qualifying of the procedure, judge Torres explained that the request had not satisfied the rule 60, which only authorizes the repair of a final judgment in exceptional circumstances.
The decision maintains the legal challenges of Ripple and throws uncertainty on the calendar of approvals Spot XRP ETF, which remain under examination of the dry.
However, the introduction of CME XRP’s term contracts gives regulated institutional investors exposure to XRP price movements at a time when interest in cryptography derivatives increases.
Last month, Coinbase announced the list of XRP term contracts, including standard XRP contracts and Nano XRP term contracts, on its exchange of regulated derivatives.
The price of XRP has been relatively stable in the past 24 hours at around $ 2.3 per Coingecko.
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