Cash-settled futures on bitcoin have been a smash success for CME, but they sometimes diverge from prices in the spot market. That has spurred interest in physically delivered contracts. Much like in the classic agricultural futures markets, the buyers and sellers of these contracts are obligated to exchange the underlying cryptocurrency when the contract expires. This mechanism effectively forces the spot and futures prices to converge at settlement.
Since 2018, CME Group has been the leader in offering a fully regulated marketplace for bitcoin futures. Its dominant position is now being challenged, however, with two large market operators stepping into the space through acquisitions.
Since 2018, CME Group has been the leader in offering a fully regulated marketplace for bitcoin futures. Its dominant position is now being challenged, however, with two large market operators stepping into the space through acquisitions.
The Commodity Futures Trading Commission’s (CFTC) Market Participants Division (MPD) (formerly the Division of Swap Dealer and Intermediary Oversight) published guidance regarding the deposit of virtual (crypto) currencies by customers and holding of these currencies by futures commission merchants (FCMs) to margin customer transactions in crypto currency futures.
Institutional investors are increasingly showing an appetite for crypto markets, said experts at FIA International Derivatives Expo conference in London on Tuesday. However, they noted a key barrier to full-scale adoption is a lack of clear regulation.
FIA joined five trade associations in a response to the Basel Committee on Banking Supervision’s consultative document on the prudential treatment of cryptoassets. The associations support BCBS’s decision to engage in an iterative approach to the prudential treatment of cryptoassets. However, the associations emphasize the need to provide clarity for the banks as the client demand grows.
While climate change and crypto assets are clearly top of mind, the policy agenda around them remains cloudy. Our markets can play a significant role in both.
Non-fungible tokens (NFTs) have received considerable press attention lately, as retail and institutional interest has boomed for digital art, commemorative items, and other assets that reside in blockchain ecosystems.
CME has reported that it took just three weeks for its new Micro Bitcoin Futures (MBT) to tally more than 650,000 contracts traded in the first month since launch. The success of this small-sized contracts hints at a broader move to encourage access to derivatives markets
Institutional investors have a growing interest in bitcoin and other digital assets, but a major stumbling block to widespread adoption is uncertainty around regulation, said panelists at FIA's International Futures Industry Conference, Boca-V. They added that while regulation uncertainty is perceived as a major headwind, some progress has been made in recent months in the US in bringing cryptocurrencies out of the shadows.
In a letter submitted to the SEC today, the FIA Principal Traders Group (FIA PTG) supported the goals of the Market Data Infrastructure Proposal to update and expand the information included in the Securities Information Processor (SIP) and to move to a decentralized consolidation model.
April 23, 2020 - In a letter submitted to the SEC today, the FIA Principal Traders Group encouraged the Commission to disapprove the Proposal citing among other things that:
In a letter filed with the Securities and Exchange Commission (SEC) today, the FIA Principal Traders Group (FIA PTG) concurred with the SEC that the current effective-upon-filing procedure for NMS plan fee amendments should be rescinded and replaced with the standard fee amendment process which allows for public comment before becoming effective.
In a letter filed with the Securities and Exchange Commission (SEC) today, the FIA Principal Traders Group (FIA PTG) again urged the SEC not to approve EDGA’s proposal to introduce an asymmetric speed bump.
In a letter filed with the Securities and Exchange Commission (SEC) today, the FIA Principal Traders Group (FIA PTG) urged the SEC not to approve EDGA’s proposal to introduce an asymmetric speed bump. FIA PTG said they remain opposed to artificial latency mechanisms of all kinds and are not aware of any data showing that speed bumps result in material improvements to market quality or benefit end investors.
In a letter submitted to the SEC today, FIA PTG again encouraged the Commission to reject IEX’s proposal to modify the resting price of its Discretionary Peg Order type.
In a letter submitted to the SEC today, FIA PTG encouraged the Commission to consider the impact and overall fairness of this mechanism, which proposes to modify the resting price of its Discretionary Peg Order type, on any displayed protected quotes on IEX.
FIA PTG submitted a letter to the SEC today in support of the Managed Funds Association (MFA) - Alternative Investment Management Association (AIMA) Petition for Rulemaking Regarding Market Data Fees and Request for Guidance on Market Data Licensing Practices; Investor Access to Market Data.
