Bitcoin futures from CME Group and CBOE will “begin by year end,” US regulators have said as they give trading the official green light Friday.
CTFC: Products Have Met Requirements
As Reuters and others report, weeks after CME announced it intended to launch Bitcoin futures trading in a landmark move for the cryptocurrency, the Commodity Futures Trading Commission (CTFC) has finally confirmed its legitimacy.
Additionally, Cantor Exchange will offer regulated Bitcoin binary options.
“Bitcoin, a virtual currency, is a commodity unlike any the Commission has dealt with in the past,” CFTC Chairman J. Christopher Giancarlo said in a press release.
As a result, we have had extensive discussions with the exchanges regarding the proposed contracts, and CME, CFE and Cantor have agreed to significant enhancements to protect customers and maintain orderly markets. In working with the Commission, CME, CFE and Cantor have set an appropriate standard for oversight over these bitcoin contracts given the CFTC’s limited statutory ability to oversee the cash market for bitcoin.
Prices React As Lawmakers Set Monitoring Benchmarks
As of press time, Bitcoin is surging ahead once more towards $10,500, having sustained significant volatility in the past 48 hours during which prices dropped to $9200.
As news of the milestone for Bitcoin spreads through the press, those on Wall Street who have chosen a hands-off approach will be watching with extra interest.
Naysayers notably include JPMorgan CEO Jamie Dimon and Bloomberg CEO Michael Bloomberg, who in a now infamous interview this week described Bitcoin as ‘Bitchain’ and said his network was an example of a Blockchain.
CME chairman emeritus Leo Melamed meanwhile had boldly claimed his intended Wall Street futures debut would make Bitcoin “not wild, nor wilder”.
“Once the contracts are launched, Commission staff will engage in a variety of risk-monitoring activities,” the CTFC release continued.
These activities include monitoring and analyzing the size and development of the market, positions and changes in positions over time, open interest, initial margin requirements, and variation margin payments, as well as stress testing positions.
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