Have you heard the news? The largest options exchange in the world is reportedly set to conclude the integration of its bitcoin futures exchange by December 17. Just in case math isn’t your forte, that’s only 14 days away! And it doesn’t stop there. The CME Group is also ready to open bitcoin futures for trading by December 18.
Terry Duffy, who is the CEO and Chairman for the US-based financial institution, announced that the company has received verbal approval from the CFTC to list bitcoin futures as well as to provide infrastructure around futures contracts.
Here’s what we know so far:
After December 18, anyone trading on the company’s bitcoin futures exchange will be limited to sparking trades with an initial margin of 35%. It is important to mention that there have been numerous risk management tools incorporated into the company’s bitcoin futures trading service.
In an official announcement, Duffy said:
“Though we have worked through a lengthy, comprehensive process with the CFTC to get to this point, we recognize bitcoin is a new, uncharted market that will continue to evolve, requiring continued collaboration with the Commission and our clients going forward. At launch, our new Bitcoin futures contract will be subject to a variety of risk management tools, including an initial margin of 35 percent, position and intraday price limits, and a number of other risk and credit controls that CME Group offers on all of its products.”
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