United States authorizes US Bitcoin futures trade
Permission to trade Bitcoin futures for the first time by Chicago Mercantile Exchange
At a time when the Bitcoin value is soaring high above 11,000 USD, the Commodity Futures Trading Commission in the United States have authorized trading futures for Bitcoin. This information of US Bitcoin futures trade was released to the media and press on 1st December 2017.
US Bitcoin Futures permission
Chicago Mercantile Exchange (CME) Group Inc. and Cboe Global Markets Inc. controlling the Chicago Board Options Exchange (CBOE) were the first ones to receive permission for official trade of futures for Bitcoin. The Chicago Exchange is showing a positive reaction for this and is ready to start immediately on the trade. There are plans for an inaugural auction to be held in a couple of weeks on 18th December 2017.
Meanwhile, Cantor Exchange now enables buying of binary options for bitcoin after receiving permission from United States authorities. Cantor Exchange is a subsidiary of Cantor Fitzgerald company which is a financial giant in the US.
The commission plans to monitor all trading of commodity futures for a reliable trading session. The authorities will be on the lookout for any suspicious activity and address any situation that arise during the trade. Head of the commission, Christopher Giancarlo stresses the level of surveillance on futures for Bitcoin and on the trading platform;
Bitcoin is a virtual currency, it’s a commodity that we have never encountered before. We expect tough monitoring from trading platforms.
Impact of Bitcoin in the US
Trading platforms cannot request permission from the commission for trading futures. The commission believes, as Bitcoin and other digital currencies have no regulations, it is necessary to create regulations by the authorities to make it more convenient to the public.
The sudden rise of Bitcoin values is attracting more and more individual, institutional and large-scale investors to cryptocurrencies in the US. Chris Concannon, President of the CBOE states the importance of the Bitcoin futures launch;
The launch of futures will actually improve the market. This will make pricing more healthy, and will also create and improve the legislative base.