Optimus Futures Enables 24/7 Trading on CME Group Cryptocurrency Futures

Optimus Futures, an NFA-member futures brokerage, has published a risk disclosure notice for its round-the-clock cryptocurrency futures offering, which spans Bitcoin (BTC), MBT, Ethereum (ETH) and MET. The notice highlights several risks for traders, including sharp daily price swings, cybersecurity threats, valuation challenges, and an uncertain regulatory outlook.

According to the disclosure, virtual currencies have routinely experienced daily price volatility of more than 20%. The broker warns that rapid and substantial price movements could result in significant losses. It adds that digital assets trade across many privately negotiated transactions and exchanges, and the lack of a centralized pricing source creates valuation challenges.

The notice also references the NFA Investor Advisory on Futures on Virtual Currencies and the CFTC Customer Advisory on virtual currency trading risks. Optimus Futures is a member of NFA and subject to its regulatory oversight and examinations, but the NFA does not have oversight authority over underlying or spot virtual currency products, transactions, exchanges, custodians, or markets.

Risks cited

Cybersecurity is flagged as a potential source of major losses. The broker says virtual currencies and related wallets or spot exchanges are vulnerable to hacking, and a cybersecurity event could result in substantial, immediate, and irreversible losses.

Margin and liquidity risks are also outlined. Optimus Futures and its clearing FCMs reserve the right to impose more restrictive limits and to liquidate positions through any available means without prior notice. Digital currency futures have limited history, so periods of limited volume or liquidity may impact price movement and execution.

The company's disclosure further cautions that virtual currencies face an uncertain regulatory landscape in the U.S. and many foreign jurisdictions. Future laws or regulations may affect the price of virtual currencies and their acceptance, the notice says.