Futures Expiry Months
We have been experimenting with how many futures months and in what order they should be listed on CoinFLEX such that the interests of all users are served from a time to expiration, withdraw profits and liquidity perspective.
We originally started with the two nearest months but then got great feedback that in the other futures markets on other exchanges, the quarterly futures had a lot of volume and open interest of contracts.
So we then moved to include the nearest quarterly contract, which was great but it then posed the question of what other month we should list. It has become clearer, based on feedback, that we will always only have 1 really liquid month and so listing a serial month before an already active quarterly contract would mean that the new serial month would have almost no meaningful liquidity or activity as the quarterly contract would be where all the focus would be at.
For example, we currently have the January and March futures contract listed. All the volumes are in the January futures and this week will switch to the March contract. Next week, if we were to add the February contract, then there will be little interest for the majority of our market makers to quote and therefore bring in takers to generate two way trading with the March contract being so active.
We also always do not want just quarterly futures listed as the lock on profit withdrawals will make it cumbersome for some of the users of the longer dated quarterly.
So we have decided that, for now, as a rule we will always have a quarterly contract and not list any new serial months ahead (shorter expiry) of any existing quarterly future but will list serial futures that follow immediately after a quarterly contract.
The switching of the new DMM programme from the expiring month to the new active month happens on the same day as the margin ramp up begins.
FLEX issuance will be split across the months the day before margin ramp up and will switch fully to the new active month on the same day that ramp up begins. This is currently two days before the expiry day (which is always the last Friday of the contract month).
So April will be the next contract and on the expiry of the March contract, June will be listed next and then July etc
So these are the pairs we intend to run going forwards: