‘Blocking’ CME Futures Spreads

Hello all! Today we want to discuss the roll of an Agency Broker and its ability to ‘Block’ futures for its clients. Here at BitOoda, we draw our knowledge from extensive experience in commodities markets. This mature asset class makes trading efficient and smooth due to its structure and work-flows, something BitOoda wants to help bring into the digital asset arena.

BitOoda’s NFA/CFTC regulated Introducing Broker, Ooda Commodities, LLC, can not only help advise and execute bilateral derivatives and structured products, but also Broker and ‘Block’ exchange listed contracts for our clients.

As the CME BTC Futures June contact has been setting record volumes over the course of the last few weeks, this contract currently has the largest Open Interest for CME Futures.

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The final trade day for the JUNE future is the last Friday of this month, 6/28/19. Traders with positions on in this product who wish to remain in their trade must roll their futures forward into the further dated contracts.

We look to the June versus September futures spread because it is both the furthest contract out the curve, but also proves to have solid liquidity based on its volume and open interest (unlike the August contract).

This morning, in the OTC Voice market we see:

BTCU19-BTCM19 35/55 (Sept. over June)

If you need to roll futures contracts, you can ask the CME to permission BitOoda (Ooda Commodities) to broker and submit OTC Voice trades into CME Clearport. To get more information on this process, please reach out to sales@bitooda.io and we can set up an information call to get this process going.

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