CME Group self-certifies listing of bitcoin futures contract

Ivan Schwartz
December 5, 2017

Announcements by Cboe and CME that they would seek to launch bitcoin futures were seen as a vote of confidence in the digital currency.

Bitcoin futures trading by Chicago derivatives exchange operator CME Group will be launched on December 18 as the path has been cleared recently thanks to the regulatory approval.

That gives Cboe a head start on CME Group Inc., its larger crosstown rival, which plans to launch its own bitcoin futures on December 18.

The fact that this price was achieved much before the end of the year and that the prices overshot this region to move beyond the $11,000 region during the month was a sample of how strong this bull run has been during the month of November.

Once liquidity builds in the Cboe bitcoin futures contract and the exchanges are able to show how their oversight of the underlying market works, Cboe plans to reapply with the U.S. Securities and Exchange Commission to launch a bitcoin ETF, Chief Executive Officer Ed Tilly said in an interview on Friday.

Yemen's Houthi rebels fire missile at Saudi Arabia
The Arab League in November 19 cited that since the beggining of conflict in Yemen 78 ballistic missiles have been fired towards Saudi Arabia from Yemen.

White House Team Is Monitoring Cryptocurrencies, Says Press Secretary
When asked by reporters during the White House press briefing if the president knew who Jayda Fransen was, Sanders replied, "No, I don't think so".

Yankees out of running for Shohei Ohtani, Brian Cashman says
This creates a window for Ohtani to negotiate with Major League Baseball teams that will expire at midnight on December 22. The Rangers are hoping to meet with Ohtani, who is in Los Angeles, in the coming days ahead of the winter meetings.

CME's bitcoin futures will be based on a "Bitcoin Reference Rate", which the company describes as "a once-a-day reference rate" based on the US-dollar price of the coins.

The cryptocurrency was last up 0.4 percent at $11,290.

Bitcoin futures would allow traders to bet on rises and falls in the digital currency, similar to the way oil, corn or gold futures work.

CME and CBOE have also agreed to enter into data-sharing agreements, particularly on the settlement process, so the CFTC can conduct its own surveillance on the new financial contracts.

Last week, a JPMorgan global markets strategist forecast that the introduction of bitcoin futures would legitimize cryptocurrency in the eyes of both institutional and retail investors, transforming the cryptocurrencies into "an emerging asset class". One bitcoin was worth just a fraction of a penny when it started trading in 2010, and by the start of this year was worth $1,000.

Other reports by GizPress

Discuss This Article

FOLLOW OUR NEWSPAPER