CME Group CEO Reveals Date For Mainstream Bitcoin Derivatives

Lloyd Doyle
November 15, 2017

It obviously understood that with higher interest and the Bitcoin trend going on right now on the news and social media, its price and demand will grow proportionally upwards. At the time, the news provoked a tremendous surge in the price of bitcoin, which escalated by nearly $1,000 in just a week since the announcement. Then inevitably will arrive Bitcoin ETFs.Cboe Global Markets Inc. president Chris Concannon has already said Cboe's working on bringing. The creation and launch of such a product boosted the confidence in investors and while cryptocurrencies may face the harsh reality of regulation and bureaucracy from governments and central banks, the financial industry is being disrupted.

The objective of futures, says Duffy, isn't to cool volatility, but instead to give folks a place hedge risk, and - if wanted - short bitcoin. Today you can not short bitcoin. You either buy it or sell it to somebody else. "So you create a two-sided market, I think it's always much more efficient".

Bitcoin was highly volatile this weekend.

"I'm not going to let it go to zero", he said, adding that if the exchange has rules in place to handle liquidation-only events. The digital currency then almost recovered all those losses to hit a high of $6,770.37 Monday, before trading near $6,360.

The bitcoin futures will have a price limit of 20% above or below the prior settlement price and price fluctuation limits of 7% and 13% above and below that level. The price settlement will be cash-settled according to the CME CF Bitcoin Reference Rate (BRR), which tracks several bitcoin trading platforms. These bumpers might pause bitcoin trading for as long as an hour, and the market will also have intraday limits to prevent the price from fluctuating too wildly within a single day of trading.

First, there will be Bitcoin futures available to institutional investors.

Other reports by Iphone Fresh

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