CME Introduces Ripple (XRP) Futures Today: Key Information You Should Be Aware Of

The Chicago Mercantile Exchange (CME) is set to introduce XRP futures contracts on May 19, offering advanced derivatives for Ripple’s cryptocurrency.

This initiative significantly broadens CME’s cryptocurrency portfolio, following the recent launch of its Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) futures products.

Understanding the New XRP Futures Contracts

A notice released on April 24 reveals that these new contracts will allow traders to gain cash-settled exposure to XRP’s price fluctuations based on the CME CF XRP-Dollar Reference Rate, eliminating the need for physical ownership of the digital asset.

The contracts feature two different sizes to cater to various trading approaches. The standard XRP futures contract, identified by the ticker XRP, represents 50,000 tokens, with a minimum price change of $0.0005 per token, which amounts to $25 per contract.

For those preferring a smaller investment, the Micro XRP futures contract (MXP) represents 2,500 XRP, maintaining the same minimum tick size of $0.0005, which equates to $1.25 per contract.

Participants were granted access to these contracts starting the evening of May 18 via CME Globex and CME ClearPort. Regular trading hours will adhere to a standard Sunday-to-Friday schedule, inclusive of a one-hour pause daily at 4 pm CT.

The CME’s announcement also indicated that these contracts will be available monthly for the next six months, along with four quarterly listings intended for March, June, September, and December. The minimum requirement for block trades is five contracts for standard futures and ten for micro futures, with a reporting obligation within 15 minutes.

Furthermore, the fee structure varies significantly based on the type of participant. Individual members will benefit from lower fees, paying $4 for standard contracts and $0.75 for micro contracts, while non-members will face higher costs of $7.50 for the standard and $1.15 for the micro contracts.

Legal Context

The launch of these products follows a recent decision by Judge Analisa Torres, who rejected a joint motion from Ripple and the U.S. Securities and Exchange Commission (SEC) seeking a ruling on a proposed $50 million settlement that would have resolved a lengthy legal dispute.

This judge, who previously noted that programmatic sales of XRP do not qualify as security offerings, indicated that it would be “procedurally improper” to approve the motion as it was not filed correctly by either party.

Despite the positive implications of institutional participation, XRP’s price has remained relatively stable. At the time of this report, the token had slightly decreased by 1.3% over the last 24 hours and by 2.6% over the past week, though it has gained 12.1% in the last month, hinting at some accumulation ahead of the futures launch.

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