The CFTC Market Risk Advisory Committee held a meeting to confirm the role of “self-certification” of Bitcoin futures

nBuzz comments: The Market Risk Advisory Council (MRAC), a consultative body of the Commodity Futures Commission, recently held its first meeting around a bitcoin futures product launched in December last year. CBOE and CME executives also participated in the meeting as the market for the futures market, sharing some of their own views. Although the participants’ opinions varied, they basically affirmed the positive role of the “self-certification” process in launching new products at the exchange.n
nTranslation: Inan
People have expressed different opinions on this market since CBOE and CME launched the first bitcoin futures in December 2017. Bitcoin fans are hoping prices will be more than $ 19,000, but soon find the reality far from it – price gains are flat and contracts are trading less. For professional traders and clearing houses, the strategy of multiple companies scrambling to exploit the cryptocurrency in December appears to be lacking from the start, and as bitcoin prices fall to half, people are starting to worry more about this stability. Still other analysts think the market needs to be mature.n
On January 31, 2018, the CFTC’s Market Risk Advisory Committee (MRAC) held its first meeting in Washington, DC, bringing together the CBOE and CME market makers of the Bitcoin futures market . This is not only the first meeting of the MRAC, but also the first public meeting of the CFTC on Bitcoin Futures. The move is also one of the conversations the U.S. regulator is making when cryptocurrencies gradually become the subject of its discussion.n

The meeting discussed the CFTC’s statutory framework and regulatory procedures for self-certification of commodity exchanges; the powers of committees; oversight tools; product design and management processes when market makers introduce new products; market makers’ discussions on the issue of bitcoin futures and beyond The process and development of the views.n
Attendees included MRAC founder and member Rostin Behnam, CFTC Chairman J. Christopher Giancarlo, CME Chief Commercial Officer Julie Winkler, CBOE President and COO Chris Concannon.n

In exploring the addition of new rules or regulations to the existing structure, CME’s Kathleen Cronin insisted:n
n”This informal process has worked well for years and I think it creates an unnecessary administrative burden if it is to set the formal process.”n
nThe CFTC Chairman Giancarlo, in recent weeks, has proposed a process for its organization to enforce a “scrutiny”, as he and other CFTC staff members reiterated at the conference. MRAC’s Rostin Behnam is special, acknowledging the setbacks and surprises in the current market, but then praised the status quo.n
Behnam said in the morning meeting:n
n”Self-certification is a unique process that provides good service to market participants, the CFTC and the general public. In fact, since Congress authorized the CFTC in 2000 to provide a self-certification process for the listing of new futures products, there have been 15 Home Exchange self-certifies 10,628 new products, providing more risk management tools to commercial end-users in many different asset classes. “n
nCBOE’s Concannon and CME’s Winkler pointed out that the bitcoin futures market is relatively calm, non-trivial and reminds regulators that neither of these markets was hurriedly launched, but instead of being linked up with institutions such as the CFTC, brokerage houses and clearing houses After many years of cooperation decided. Both exchanges agree that self-certification allows them to maintain their flexibility in a global competitive climate and set incentives from the exchange where necessary.n

Behnam thanked all the participants at the conclusion of the meeting, saying “self-certification played a role.” A few days later, the chairman of the SEC and the CFTC will attend the Senate hearing on February 6 about cryptocurrencies.n

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