XRP and Micro XRP futures contracts, ticker symbols XRP and MXP respectively, are USD cash-settled contracts based on the CME CF XRP-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of XRP. The XRPUSD_RR aggregates the trade flow of cryptocurrency spot exchanges during a one-hour calculation window into the U.S. dollar price of one token as of 4:00 p.m. London time.
XRP and MXP futures trade Sunday through Friday, from 6:00 p.m. to 5:00 p.m. New York time.
What is XRP?
XRP is the native token of the XRP Ledger. This open-source ledger was developed to facilitate real-time settlements among banks, payment platforms and digital asset exchanges. The total supply of XRP tokens was pre-mined and capped at 100 billion tokens.
XRP and Micro XRP futures allow individuals to access the XRP market as well as hedge any direct exposure to XRP’s price risk.
Understanding XRP futures
A single XRP futures contract represents 50,000 XRP and is quoted in U.S. dollars per one token. The minimum tick increment is 0.0005 U.S. dollars per token, meaning a one-tick move of the XRP futures is equal to $25.
A single Micro XRP futures contract represents 2,500 XRP and is also quoted in U.S. dollars per one token. The minimum tick increment is 0.0005 U.S. dollars per one token, meaning one tick movement is equal to $1.25.
XRP futures are block trade eligible with a minimum quantity threshold of five contracts, and Micro XRP futures are block trade eligible with a minimum quantity of 10 contracts.
XRP and MXP futures expire on the last Friday of the month and six consecutive monthly contracts, plus four quarterly contracts, are listed inclusive of the nearest two December contracts.
For example, assume it’s January and the six consecutive contract months are January, February, March, April, May and June. The four quarterly contracts would be September and December of that same year, and March and June of the next year. In addition, a second December contract will also be listed. This process continues throughout each year.
Summary
XRP is a large portion of the growing digital asset market. XRP futures provide market participants with transparency, price discovery and risk management capabilities.
The contract will also allow individuals to access the XRP market as well as hedge any direct exposure to XRP’s price risk.
For more information about XRP futures, please visit cmegroup.com/XRP.
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