The Chicago derivatives exchange operator, CME Group, announced that he has self-certified the first listing of his bitcoin futures contract. to launch on December 18th.
CME CEO Terry Duffy made the historic announcement Friday, revealing that the stock exchange has received approval from the US Commodity Futures Trading Commission (CFTC) to begin trading future bitcoin in just over two weeks:
"We are pleased to introduce Bitcoin futures on the market after working closely with the CFTC and market players to develop a regulated offer that will provide investors with transparency, discovery of prices and transfer of risk Duffy.
Futures will be settled in cash, which means that no actual bitcoin will change hands upon the expiry of the contracts. Market data from bitcoin exchanges Bitstamp, GDAX, itBit and Kraken will be used to calculate the CME Bitcoin Reference Rate (BBR) once a day.
However, despite the cash settlement process, some institutional investors have expressed concern over the addition of bitcoin derivatives to CME. Duffy sought to allay these concerns by pointing out that the contracts will be subject to a myriad of risk management tools to prevent the volatility of bitcoin from having unwanted drive effects on any business. other markets.
"Although we have been working on a long process with the CFTC to get to this point, we recognize that Bitcoin is a new unexplored market that will continue to evolve, requiring ongoing collaboration with the Commission. and our customers are going forward, "said Duffy." At launch, our new Bitcoin futures will be subject to various risk management tools, including an initial margin of 35%, position limits and intraday courses and a number of other credit and risk controls offered by CME Group. his products. "
CME is not the only US exchange that plans to add bitcoin futures to its product offerings. CBOE has already expressed its desire to list these products, and – just this week – the Wall Street Journal reported Nasdaq Inc. hopes to list future bitcoin on one of its US stock exchanges during the first half of 2018.
The launch of the first bitcoin futures on a regulated US exchange should be a turning point for the cryptocurrency industry. Not only will it offer professional traders the opportunity to sell bitcoins for the first time, but it will also pave the way for the creation of a Bitcoin ETF and will likely incite Wall Street companies to leave the sidelines and to engage directly with bitcoin and others. digital assets. In the end, the first bitcoin futures trade could be considered as the event that ensured the entry of bitcoin into the traditional financial services sector.
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