Bitcoin Price Rallies to $10760 After CME Futures Get Launch Date
- Author: Rita Burton Dec 02, 2017,
Dec 02, 2017, 0:33
The U.S. derivatives regulator said on Friday it would allow CME Group Inc and CBOE Global Markets Inc to list bitcoin futures, after the rival bourses showed their proposed contracts and trading arrangements met necessary requirements. "In working with the Commission, CME, CFE and Cantor have set an appropriate standard for oversight over these bitcoin contracts given the CFTC's limited statutory ability to oversee the cash market for bitcoin". Bitcoin prices have surged more than tenfold this year and earlier this week moved past $11,000 before dropping. "This opens up the doors to exchange traded funds and institutional money".
The unique products will start trading on Monday, December 18, 2017, and offer investors the chance to bet on the price direction of bitcoin without needing physical access to the cryptocurrency. Friday, bitcoin was trading near $10,100 before the news broke, and jumped above $10,650 afterward, according to CoinDesk.
CME Group, the world's largest futures exchange, has announced that it has self-certified the initial listing of its Bitcoin futures contract.More news: 2nd Woman Accuses Franken Of Harassment
"Bitcoin, a virtual currency, is a commodity unlike any the Commission has dealt with in the past", said CFTC Chairman J. Christopher Giancarlo in a press release.
In order to regulate trading, all three exchanges and the Commission will be heavily regulating trading, as well providing the Commission with additional surveillance information regarding the futures. "Nevertheless, investors should be aware of the potentially high level of volatility and risk in trading these contracts".
The agency said the exchanges agreed to modify the derivatives contracts and promised to coordinate with the CFTC and each other to guard against market manipulation and other irregularities.