Cboe beats CME to bitcoin futures launch with December 10 start


According to the official release, CME Group has self-certified the initial listing of its Bitcoin futures contract, which will be listed on and subject to the rules of CME.

The CME Group, which owns the Chicago Mercantile Exchange, will start trading bitcoin futures from December 18, the company said. This memorandum is considered advertising under applicable state laws.

The price of bitcoin slumped 10.9 per cent from a record high of $US11,845 to $US10,550 before bouncing back to $US11,294 at 11am Perth time. Its price has jumped more than tenfold this year. We are committed to encouraging fairness and liquidity in the bitcoin market.

The cryptocurrency was last up 0.7 percent at $11,324. They will also be cash-settled, similar to CME's bitcoin futures. The first bitcoin futures contracts on a regulated US exchange are set to launch on Sunday.

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The contracts will initially require a margin deposit of 35%, and will be subjected to "hard" price limits of 20% - the contracts won't be able to rise or fall by more than 20% on any given day, the statement said.

Cboe's bitcoin futures will trade on CFE under the ticker symbol 'XBT.' XBTSM futures are cash-settled contracts based on Gemini's auction price for bitcoin, denominated in USA dollars. At the time in August, the CBOE was working with New York-based bitcoin exchange Gemini, which is run by investors Cameron and Tyler Winklevoss, ahead of the launch. Market data from bitcoin exchanges Bitstamp, GDAX, itBit, and Kraken will be used to calculate CME's once-a-day Bitcoin Reference Rate (BBR).

The Commodity Futures Trading Commission said it had discussions with the exchanges to protect consumers from extreme price swings. The entry of institutional money is also expected to act as a stabilizing mechanism for the cryptocurrency's recent wild price swings.