The American Futures Association criticized new derivatives of Bitcoin

nBankruptcy comment: Bitcoin futures products will soon be officially launched in the US futures market, the news makes some people excited, but it also raised some concerns. The United States Futures Industry Association has written a letter on this issue to the Commodity Futures Trading Commission, raising doubts and concerns among members of the organization over Bitcoin derivatives. In general, bitcoin futures contracts will inevitably trigger a series of problems after they are launched, and it still needs multi-dimensional cooperation to achieve development.n
nTranslation: Inan
The CME Group and the CBOE have announced the launch date of their respective Bitcoin futures contract in a matter of days and the U.S. Clearing House expressed concern about the development of these products.n
In a letter to the Commodity Futures Trading Commission (CFTC), Walt Lukken, chief executive of the Futures Association of the United States, said FIA members are concerned that these new contracts will make them vulnerable to bitcoin price fluctuations. The organization has more than 15,000 members, including some of Wall Street’s largest institutions.n
Lukken writes: “The recent volatility in these markets has underscored the importance of setting standards and processes appropriately and carefully.”n
Members of the FIA ​​are responsible for securing customer transactions and contributing secured funds in case the client company is unable to pay the contract.n
Lukken pointed out in the letter that members of the FIA ​​are concerned that they will have to pay for open interest due to changes in the price of bitcoin.n
He wrote:n
n”There should be an open discussion about whether it is appropriate to have a separate guarantee for the product, or whether the exchange is going to have to prepare additional capital beyond the clearing member’s guaranteed funds.”n
nLukken also noted that although CME and CBOE technically followed legal procedures detailing self-certification contracts, since Bitcoin futures are not standard products, they should adopt a more long-term approach.n
In his opinion, open discussion allows FIA members to conduct their own tests to secure these contracts.n
He wrote: “We are still concerned about the lack of transparency and regulation of the underlying reference products for these futures contracts.” He also raised questions about whether the companies that provided them could protect their customers from manipulation, fraud and manipulation Risk infringement.n

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