Bitcoin trading is officially happening in a way that most traders would appreciate. As of yesterday, the major US financial firm CME Group, coupled with CBOE and Cantor Fitzgerald revealed that after months of considering, they will begin to offer exposure to cryptocurrencies starting from December 18th.
It all started with an statement by the US Commodity Futures Trading Commission (CFTC) where the regulator said that all three companies will pursue an initial listing after working with the agency to develop a standard for the offerings.
Obviously, Bitcoin futures trading is a new thing now and would be further developed to a point where it will be launched as a futures product. At this point, both CME and CBOE are going to offer cash-settled contracts that will suit investors buying exposure to different reference rates without custody of the asset.
While CME will use a custom reference rate created with their partner Crypto Facilities, CBOE will use data from the NY-based cryptocurrency exchange Gemini – both in order to regulate the Bitcoin futures trading and binary options as of December 18th.
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Even though this form of trading is announced and is going to take part soon this month, CFTC Commissioner J. Christopher Giancarlo has cautioned people against the idea that the products will be regulated by the CFTC – and that this form of market is still unknown to many.
He said:
“Market participants should take note that the relatively nascent underlying cash markets and exchanges for bitcoin remain largely unregulated markets over which the CFTC has limited statutory authority. There are concerns about the price volatility and trading practices of participants in these markets.”
Despite these warnings, the companies who were listing the products expressed optimism about the release, saying that the Chicago-based exchange is about to project a regulated offering that will “provide investors with complete transparency, price discovery and risk transfer capabilities”m according to Terry Duffy, CME Group chairman and CEO.
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