New contract to provide regulated trading venue for cryptocurrency market

CME Group, leading derivatives marketplace, today announced it intends to launch bitcoin futures in the fourth quarter of 2017, pending all relevant regulatory review periods.

The new contract will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR) which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin.  Bitcoin futures will be listed on and subject to the rules of CME.

bitcoin-cash pricing

Source:  http://www.cmegroup.com/trading/cf-bitcoin-reference-rate/historical-data.html

Coming Soon:  Bitcoin Futures

As demand for a regulated trading venue for the digital asset market increases, CME Group will launch Bitcoin futures, based on the CME CF Bitcoin Reference Rate (BRR), in Q4 2017.

Learn More

Since November last year, CME Group and UK-based bitcoin futures exchange Crypto Facilities Ltd have calculated and published the BRR, which consolidates the trade flow of major bitcoin spot exchanges during a calculation window into the U.S. dollar price of one bitcoin as of 4:00 p.m. London time.

Cryptocurrency exchanges Bitstamp, GDAX, itBit and Kraken currrently contribute prices for calculating the BRR.

This year’s bitcoin rally has created a divide on Wall Street.

Many large institutions support the use of blockchain, the technology underlying cryptocurrencies, to improve backoffice processes.  Yet some bankers oppose doing business with actual cryptocurrencies that are not backed by national governments and have been involved in scandals.  Others like CME see cryptocurrencies as a business opportunity.  Rival exchange group CBOE Holdings Inc has applied with U.S. regulators to launch a bitcoin futures contract and a bitcoin exchange traded fund on its venues.

CME and Crypto Facilities also publish the CME CF Bitcoin Real Time Index (BRTI) to provide price transparency.  The index provides a spot price that reflects instantaneous U.S. dollar price of bitcoin.

Coming Soon:  Bitcoin Futures

As demand for a regulated trading venue for the digital asset market increases, CME Group will launch Bitcoin futures, based on the CME CF Bitcoin Reference Rate (BRR), in Q4 2017.

Learn More


IMPORTANT RISK DISCLOSURE
You should fully understand the risks associated with trading futures, options on futures, commodity trading systems and retail off-exchange foreign currency transactions (“Forex”) before making any trades.  Trading futures, options on futures, Forex and commodity trading systems involves substantial risk of loss and is not suitable for all investors.  The ability to withstand losses and to adhere to a particular trading program in spite of trading losses are material points which can adversely affect investor returns.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources.  You may loss all or more than your initial investment.  Opinions, market data, and recommendations are subject to change without notice.  Past performance is not necessarily indicative of future results.
Please read carefully the CFTC required disclaimer regarding hypothetical results below.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW.  NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.  ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT.  IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING.  FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS.  THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
EFLOORTRADE HAS NO OPINION ONE WAY OR ANOTHER AS TO EXPECTED FUTURE PERFORMANCE.  THEREFORE, IT IS THE CLIENT’S OBLIGATION TO MONITOR INVESTMENTS IN THEIR ACCOUNTS AND TO DETERMINE WHETHER OR NOT THEIR INVESTMENTS ARE PERFORMING AS EXPECTED.

 

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