A "natural" circuit-break works just as well, maybe even better than the CME proposed circuit breakers. Let the market just do its work:
I agree with you, but then you must plan for market events like this: https://www.cnbc.com/2017/06/22/eth...exchange-after-multimillion-dollar-trade.html
Bitcoin futures launch to be Dec. 18 https://seekingalpha.com/news/3315669-bitcoin-futures-launch-dec-18 CME FAQ http://www.cmegroup.com/education/cme-bitcoin-futures-frequently-asked-questions.html .
What CME membership would be relevant for Bitcoin futures? GEM, IOM, IMM, or the full CME membership?
At launch, our new Bitcoin futures contract will be subject to a variety of risk management tools, including an initial margin of 35 percent, position and intraday price limits, and a number of other risk and credit controls that CME Group offers on all of its products." So there we have it. Assuming they mean at a reference price of $10,000 per coin each at the start, that's $3,500 on 5 units each for $17,500 initial. Wonder what day-trade margins the discount brokers will be offering.
CME BTC minimum price fluctuation is $25 or $5 per bitcoin, and contract unit is 5 bitcoins. What is the minimum margin requirement? For CME ES contract, minimum margin requirement is about $5000 per contract.