Wall Street banks oppose the introduction of bitcoin futures contracts

nBankruptcy Commentary: With the approval of the Bitcoin futures products of the CME and CBOE Futures Exchanges and the recent market transactions, the price of bitcoin has continued to skyrocket recently. Major Wall Street banks responded to upcoming Bitcoin futures contracts, arguing that the financial system is not yet ready to deal with rising prices. Meanwhile, the Financial Times reported that in a letter to the CFTC, the industry lobby group Futures Industry Association also said that the introduction of the Bitcoin futures contract did not achieve proper public transparency.n
nTranslation: Clovern
Major Wall Street banks responded to upcoming Bitcoin futures contracts, saying the financial system is not yet ready to deal with rising prices.n
It seems that Bitcoin prices hit a new high every day. Earlier in the day, bitcoin prices reportedly exceeded the milestone of $ 15,000 and for the first time pushed their market capitalization to more than $ 250 billion. Prior to the launch of bitcoin futures, another breakthrough came after bitcoin prices soared from $ 12,000 to $ 13,000 yesterday.n
On December 10, Chicago-based exchange Chicago Board Options Exchange (CBOE) will launch its bitcoin futures products on the global market, followed by CME Group’s launch of the bit on December 18 Currency futures. Before the announcement, both exchanges were approved by the Commodity Futures Trading Commission (CFTC) last week.n
It is reported that NASDAQ will also follow the pace of these two exchanges, plans to launch in the first half of 2018 bitcoin futures contracts. However, Nasdaq is trying to differentiate its product positioning from the two Chicago exchanges. The Tokyo Financial Exchange will also follow the example of its US rival and want to join the crazy wave of bitcoin trading. According to reports Wednesday, the Japan exchange will launch its own bitcoin derivative futures products to support bitcoin as a financial product.n
However, despite all these positive moves, keen investors will be able to trade bitcoin as assets through regulated markets, but major brokers have criticized the move.n
In a letter to the CFTC, the industry lobby group Futures Industry Association (whose members include JP Morgan and Goldman Sachs) said that the launch of the Bitcoin futures contract “did not materialize Public transparency and commitment. ” The letter is expected to reach the CFTC today.n
Both CME and CBOE agree that their contracts operate under a self-certification system. However, this means that regulators do not have much time to review them. According to the letter, ‘The self-certification of these new products does not meet the potential risks behind their transactions and should be reviewed. ‘n
According to the FIA, its members have reservations about the reliability of the price of a Bitcoin futures contract. The value of Bitcoin has risen by more than 50% this month alone; however, its price is likely to drop rapidly. As of the end of November, the demand for crypto-currency exchanges was unmanageable after news of the intermittent power outage had been incurred, so bitcoin plummeted nearly 20% in 90.n

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