CME to Begin Trading Bitcoin Futures December 18

Derivatives marketplace operator CME Group will launch a bitcoin futures product on December 18, ending speculation as to when the much-anticipated offering would be available on the U.S. markets.

In a press announcement, CME said it has self-certified the initial listing of the product and that it has received approval from the U.S. Commodity Futures Trading Commission (CFTC) to do so. The reveal comes just weeks after CME indicated via its website that it would launch the product on December 11, before retracting the remarks.

Terry Duffy, CME Group chairman and CEO said:

“We are pleased to bring bitcoin futures to market after working closely with the CFTC and market participants to design a regulated offering that will provide investors with transparency, price discovery, and risk transfer capabilities.”

The cash-settled contracts will notably find investors buying exposure to a custom reference rate created by CME and partner Crypto Facilities, and will not require the custody of the underlying asset.

Still, at launch, Duffy explained the bitcoin futures product will be subject to risk management tools, including a margin of 35 percent, position and intraday price limits.

The new contract will be traded on the CME Globex platform.

For more on CME’s views on its forthcoming product, view our interview with managing director of equity products, Tim McCourt, below.

CME image via Shutterstock

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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