Digital Assets: Ether Options To Debut On CME September 12

August 18, 2022 | Digital Assets, Latest News, News

The launch comes ahead of the much-hyped Ethereum Merge next month.

Derivatives exchange CME Group (NASDAQ: CME) intends to launch options on its ether future contracts on September 12. The new option contracts are based on one ether futures, sized at 50 ether per contract, and based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of Ether. (CISION PR NEWSWIRE)

“As we approach the highly anticipated Ethereum Merge next month, we continue to see market participants turn to CME Group to manage ether price risk,” said Tim McCourt, Global Head of Equity and FX Products, CME Group. “Our new Ether options will offer a wide array of clients greater flexibility and added precision to manage their ether exposure ahead of market moving events.”

“This larger-sized Ether option, in tandem with the already popular Micro Ether option, has been eagerly awaited by TP ICAP’s customers,” said Sam Newman, Digital Assets Head of Brokering at TP ICAP. “With the upcoming Ethereum protocol merge, we expect this new contract to see significant interest from both our traditional customers as well as crypto native clients.”

The new ether option contracts join CME Group’s existing suite of cryptocurrency options contracts, which include bitcoin options, as well as micro-sized bitcoin and ether options.

The Ethereum Merge

The Ethereum Merge is a long-pending upgrade to the ethereum blockchain network that would reduce its electricity requirements by over 99%.

In the Merge, ethereum will adopt a system known as proof of stake, in place of a highly energy intensive system known as proof of work that involved highly complex mathematical crypto puzzles.

In proof of stake, these puzzles will no longer be required, hence slashing computational resources and the energy used to run them.

On Merge day, the data held on ethereum’s mainnet would be transferred to the proof of stake beacon chain, which will then become the prime blockchain on ethereum’s network.

Related Story: CME Announces Trading In Micro Ether Futures Effective December 6

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