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Just recently news.Bitcoin.com reported on the Chicago Mercantile Exchange (CME Group) planning to launch its bitcoin-based derivatives products this quarter. Now according to CMEâs bitcoin futures market specs, the firm plans to launch its derivatives products on December 10 pending regulatory approval.
**On November 20, 2017, at 5:00 pm EDT, CME Group Inc, announced that it will launch its futures contracts this year but the December 10-11 dates were posted in error.
CME Groupâs CEO Terry Duffy: âOur Exchange is the Natural Home for This New Bitcoin-Based Vehicleâ
At the end of October, the worldâs largest options exchange announced it would be offering mainstream investors the chance to participate in bitcoin-based futures markets in Q4 of 2017. The company will follow the firm, LedgerX, which has been swapping bitcoin futures for a few weeks now. Terry Duffy, CME Groupâs CEO, and Chairman explained at the time that there is a lot of interest in bitcoin derivatives products stating;
Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract â As the worldâs largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities.
CMEâs Aims to Launch Futures Products on December 10
CME has released its futures market specs, and on November 19 a date was revealed for launch time pending U.S. regulatory approval.
âEffective Sunday 10 December 2017 for trade date Monday 11 December 2017, and pending all relevant regulatory review periods, please be advised that CME will launch Bitcoin Futures,â explains CME Groupâs most recent update.
CMEâs futures will be based on the price of BTC per USD with a contract unit of five index points. The products will be listed on CME, Clearport, and CMEâs Globex central standard time, and the five index points will be $25. Further, registered monthly contracts will be for the nearest two months in the March quarterly cycle (Mar, Jun, Sep, Dec) plus the nearest two serial months not in the March quarterly cycle, explains CME.
CME Groups Specs updated yesterday on November 20 detailing that the firmâs bitcoin-based futures markets will begin on December 10, 2017.
Will Futures Tame Bitcoinâs Volatility or Amplify Price Swings?
Some speculators believe CMEâs futures products will bring less volatility to bitcoin spot markets. For instance, the companyâs contracts will be issued for $25 USD but will not swing more than 20 percent above or below the previous settlement prices. However taming bitcoinâs significant price fluctuations with futures markets is currently a theoretical concept as cryptocurrency is a whole new beast as far as trading is concerned.
For now, a bunch of bitcoiners are looking forward to seeing what CMEâs bitcoin futures bring to the digital assetâs ecosystem, and cryptocurrency enthusiasts will soon find out.
What do you think about CME Group launching its bitcoin futures contracts on December 10? Let us know in the comments below.
Images via Pixabay, and CME Group.
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The post CME Group Plans to Launch Bitcoin Futures December 10 appeared first on Bitcoin News.
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