CME Group to launch options on XRP and SOL futures

CME Group will offer options based on the derivative markets on Solana (SOL) and XRP. The new markets will open on October 13, after regulatory approval. 

CME Group will expand its crypto products with options on the futures markets of Solana (SOL) and XRP. The futures market will start on October 13, after regulatory review and approval. 

The options will allow the trading of MicroSol, XRP, and MicroXRP futures, with expiry dates available every business day, monthly, and quarterly. The new products will be added to the existing BTC and ETH options markets.

‘The launch of these options contracts builds on the significant growth and increasing liquidity we have seen across our suite of Solana and XRP futures,’ said Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products.

The options contracts will have two main sizes, tracking the futures contracts. The new market will be suitable for sophisticated institutional traders, as well as active individual traders. The addition of options markets singles out XRP and SOL as liquid enough to offer the potential to bet on a market direction. 

The options on futures arrive a few months after the launch of SOL futures. Both SOL and XRP had peak volumes in August, though XRP activity has slowed down in September.

XRP and SOL options to tap both institutions and active traders

Crypto options are one of the indicators of market attitudes, with XRP and SOL receiving a new way to gauge sentiment. The contracts will be supported by the Cumberland team. 

‘As one of the biggest liquidity providers in the ecosystem, the Cumberland team is excited to support CME Group’s continued expansion of crypto offerings,’ said Roman Makarov, Head of Cumberland Options Trading at DRW.

‘The launch of options on Solana and XRP futures is the latest example of the move beyond the staples of bitcoin and ether and demonstrates continued demand from the market to have exposure to a broader set of products.’

FalconX, another leading crypto prime brokerage, will also assist in market efficiency and liquidity. According to FalconX, the emergence of treasuries and ETFs has increased the need for hedging tools through options positions. XRP and SOL are among the most probable assets to add new ETFs in the coming months, and SOL has started growing its list of treasury companies. 

CME to offer trading at settlement (TAS) mechanism

The SOL and XRP futures markets will offer another regulated feature, offering more predictable orders. CME announced plans to launch trading at settlement (TAS) mechanisms, which will allow traders to place orders at the day’s settlement price. 

CME futures settle daily at 4 A.M. Eastern time, offering a predictable hour to fulfill orders. TAS mechanisms allow the purchase of assets at a more predictable price, avoiding time constraints and daily fluctuations. Crypto trading has stronger and weaker periods, but TAS orders will allow traders to track the underlying asset indexes, which take into account the settlement price.

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