World’s largest crypto exchange in terms of the trade volume OKEx, recently made a declaration regarding delivery of Bitcoin Cash (BCH) futures contracts. It planned the early delivery of Bitcoin Cash futures contracts after trading stop time on Nov 14.
A tweet by OKEx affirmed the early delivery of Bitcoin Cash futures and the announcement came almost at the same time of the trading stop time. Reportedly, the exchange had decided to reveal the early delivery not ahead of time to avoid losses to their clients due to market manipulation.
Also, the early delivery was planned in order to prevent “short-time” volatility which can have a significant impact. In the official press release, OKEx apologized saying that the exchange also intended to avoid associated potential losses to their customers and a possible crush of the BCH spot market.
The press release adds, “If the contracts had been delivered immediately after the trading stopped, the quantitative trading programs used by our high-frequency quantitative traders would have detected zero position of Bch Futures contract and automatically sold BCH in the spot market.”
Additionally, OKEx marked that the “imminent” Bitcoin Cash fork poses “significant uncertainty of the digital asset’s development,” and is capable of generating market manipulation with immediate impact.
It also claimed that the Bitcoin Cash hard fork is an “extremely special case,” and its outcomes are still “unpredictable,” noting that the exchange’s team “may lack time to respond to the market.”
Based on the last traded prices, all futures contracts were ready to be delivered, with all bankruptcy positions to be covered from the insurance fund or to be processed according to the company’s standard approach.
Further, OKEx revealed that the overall performance of the market will determine their stand on recreating BCH or BCH-fork contracts after the fork.
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