The US Futures Trading Commission (CFTC) authorized two Chicago-based futures exchanges to issue futures for bitcoins. CME Group and Cboe Global Markets can begin trading them in the coming weeks, reports The Wall Street Journal.
After the statement of the regulator, CME Group reported that futures trading on its site will begin on December 18. Cboe intends to announce the start date of trading in the near future.
After a “substantive discussion” of the issue in recent weeks, both exchanges made significant changes to their proposals at the request of the regulator, the CFTC reported. In particular, steps have been taken to reduce the risks of market manipulation. The CFTC also obliged both exchanges to closely monitor the bitcoin trade on crypto-exchanges, which became their partners, and help the commission to oversee these sites.
Trading derivatives on bitkoyn in the coming months will begin several traditional exchanges
CFTC Chairman Christopher Giancarlo warned investors about the extremely high volatility of bitcoins. “Market participants should keep in mind that relatively recently emerging markets and stock exchanges for bitkoyn remain unregulated, and CFTC’s surveillance rights are limited. There remain some concerns about the price volatility and trade practices of participants in these markets, “- said in his statement.
For example, during Wednesday and Thursday bitkoyn first increased by 15%, exceeding $ 11,000, then collapsed by 21% below $ 9,000, then played a part of the losses. According to coinmarketcap.com at 18.00 Moscow time on Friday, the bitkoy rate was $ 10,674. In addition, the crypto-instruments have faced many problems: they were subjected to hacker attacks, switched off, and the Japanese Mt. Gox, which was once the largest exchange kriptovalyut, went bankrupt in 2014.
CME has agreed with Bitstream, GDAX, itBit and Kraken cryptographic exchanges, based on their quotes, it will calculate the reference rate of the CME CF Bitcoin Reference Rate and install it once a day. This rate will be used to calculate the futures contract.
Now there are almost no borrowed funds in the markets of banks and other banks, notes Jon Trisis, co-publisher of the investment newsletter Fuller Treacy Money. When this changes with the introduction of futures and options, the markets will have both additional capital and the opportunity to hedge positions due to short sales (ie, downgrade games), which can lead to even greater volatility, he believes. Some other analysts believe that increasing liquidity will, on the contrary, reduce volatility.
CME and Cboe conducted independent certification of futures contracts, that is, they assured the CFTC that they fully comply with all laws and regulations. The Commission has the right not to authorize the use of such a contract, however, if it has no objections, the exchange may start trading it.
The CFTC also reported that the Cantor Exchange, owned by the brokerage company Cantor Fitzgerald, has independently certified a binary option for bitcoins. With the help of such a derivative, players can bet on one of two events that can happen with a price.
On Wednesday, the WSJ wrote that the Nasdaq exchange is planned to release futures for bitcoins in 2018.