4 ms·
Bitcoin Futures start trading on the CME in the next few weeks: http://www.cmegroup.com/bitcoin http://www.cmegroup.com/bitcoin However the largest electronic
by mbgaxyz 9y ago
Bitcoin Futures start trading on the CME in the next few weeks:
http://www.cmegroup.com/bitcoin http://www.cmegroup.com/bitcoin
However the largest electronic brokerage in the US considers it unwise:
https://cointelegraph.com/news/cme-clearing-member-to-regulator-bitcoin-futures-impossible https://cointelegraph.com/news/cme-clearing-member-to-regula...
- panarky 9y agoPeterffy's letter to the CME is short and fun reading. https://www.interactivebrokers.com/download/11-IB17-1145-tp-letter-to-futures-trading-commission.pdf https://www.interactivebrokers.com/download/11-IB17-1145-tp-... [PDF] His doomsday scenario is based on the Bitcoin price rising rapidly. The CME's volatility limits would kick in, preventing shorts buying to cover their positions. This leads to "ruin" for them and the CME, and contagion for the real economy. He has a good point, since losses on short positions are theoretically infinite, there's no way to put up enough margin for perfect safety.
- thisisit 9y agoThen this has happened - https://www.bloomberg.com/news/articles/2017-11-15/bitcoin-exchange-that-cme-plans-to-use-for-futures-is-down https://www.bloomberg.com/news/articles/2017-11-15/bitcoin-e... So it will be interesting to see how the pricing really works.