CME Group to Launch Bitcoin Futures on December 18
The largest North American financial derivatives market has approved a launch date for bitcoin futures. Traders will have access to the new financial instrument on Monday, December 18th. Information about this was published on the company’s website.
“We are delighted to have the opportunity to bring Bitcoin futures to the market after we have worked together on this issue with the CFTC and other market players,” said CME Group CEO Terry Duffy.
He also noted that the process of developing the tool was drawn out. This is due to the novelty and underdevelopment of the bitcoin market. The guarantee collateral for futures will be 35%, which is quite a high value for this type of instrument. In addition, CME Group will use mechanisms to reduce the risks associated with cryptocurrency volatility, including using intraday limits on price fluctuations, upon reaching which trading will partially or completely stop.
For the calculation of futures contracts, the CME CF Bitcoin Reference Rate (BRR) will be used, which includes data from platforms such as Bitstamp, GDAX, itBit and Kraken.
The tool is launched according to the self-certification scheme. According to US laws, CME Group has the right to launch such tools without the consent of the regulator. To do this, she just needs to notify the CFTC that the contracts comply with the established rules..
Recall that CME Group announced the launch of Bitcoin futures at the end of October. Then it was announced that the launch would take place in the fourth quarter of this year, but the exact date was not named. This news had an extremely positive impact on the Bitcoin market, which recently hit $ 11,500, but traders feared that if the launch of futures was canceled or postponed, the market could crash..
Photo: Casimiro PT