Cboe Beats CME to Bitcoin Futures Launch With Dec. 10 Start

Robyn Ryan
December 5, 2017

"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", said Terry Duffy, CME Group (NASDAQ:) Chairman and Chief Executive Officer on Friday.

CME, which owns various derivative trading platforms such as the Chicago Mercantile Exchange, said in a statement on Friday that there will be risk-management measures in place as bitcoin is a "new, uncharted market".

The move will subject some of the bitcoin market to federal regulation for the first time. CBOE's stock has run up 68% year to date, while the S&P 500 has gained 18%.

CBOE Global Markets Inc. said Monday it will begin trading bitcoin futures on its exchange Sunday, eight days before its rival CME Group Inc. does the same, following a recent green light for both venues by the U.S. Commodity Futures Trading Commission.

CME is not the only USA exchange that is going to add bitcoin futures to their product offerings.

Bitcoin has gained more mainstream attention lately as its price has soared on the private exchanges.

The launch of the first bitcoin futures contracts on a regulated US exchange is expected to be a watershed moment for the cryptocurrency industry.

The new contract will be listed on, and subject to the rules of, CME. The first bitcoin futures contracts on a regulated USA exchange are set to launch on Sunday. Of course, this requires the approval of the regulators, which is likely to be a big challenge, but this also throws open the doors for the launch of bitcoin futures in other major exchanges which is likely to help the bitcoin market to continue to mature in a quick manner.

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