The United States authorities approved the first bitcoin financial products
According to U.S. media reports, derivatives exchange TeraExchange on Friday officially launched the world’s first bitcoin swaps, which is the first to get approval from U.S. regulators based on bitcoin financial products. In March this year, TeraExchange announced plans to launch the product, which lasted six months to get the Commodity Futures Trading Commission (CFTC) approved. TeraExchange bitcoin derivatives can help reduce bitcoin price volatility and risk.
Bitcoin in 2009 turned out, more and more companies started to accept bitcoin payments. But the huge fluctuations in the value, causing some customers losing millions of dollars. This tool allows the customer by locking the value of a dollar, providing digital currency fluctuations in the price of insurance to protect their bitcoin value of assets.
Different from the previous currency, bitcoin is independent control and no government background, but it has also led to the need for more supervision and how to formulate its tax policy. The company is the crisis that emerged after a few to swap platform supervision to promote, it must construct an index to measure the value of bitcoin, bitcoin Swap in the amount of a given value of the dollar, the difference is when the contract expired in dollars. In the two time, the contract quoted price index released in real time, so the commodity futures trading commission of not easily manipulated by this point is satisfied.
The U.S. Treasury Department last year, according to the national regulatory responsibilities, finds bitcoin money transfer companies need to apply for a license, industry representatives attended the hearing held by federal regulators, everyone in this mixed system. The Commodity Futures Trading Commission regulatory bitcoin swaps and futures trading decisions, has become the first to admit that bitcoin financial products in the United States federal regulators, even if the product itself does not involve actual bitcoin transactions.
TeraExchange said, has signed about 50 customers interested in the product, including businesses, hardware vendors and miners. The Swap began trading from now on sale Friday morning. Has received by market makers, the company provides a convenient price for the sale of the transaction.
Note: Swap is a kind of financial derivatives (also known as financial derivatives), refers to the two parties agree each other in a future period to exchange their holdings of assets or cash flow transaction form. More common is the currency swaps and interest rate swaps, were mostly used as hedging and speculative purposes.