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Some Wall Street banks won't offer access to the first Bitcoin futures market
- wyldfire 9y ago> As investors rush into bitcoin, some big Wall Street banks are hitting the brakes. This metaphor sounds as if they're taking an affirmative step to halt the "rush." But they're just not opting-in to this new futures offering. If we need to stick with this metaphor, let's try "some big Wall Street banks are coasting."
- joeschmoecad 9y agoyep. FUD.
- hndamien 9y agoThis reminds me of the time that other industry being disrupted pressed pause on the disruptor.
- Nursie 9y agoBeing disrupted! Lol
- ringaroundthetx 9y agoThis is worth paying attention to though, the CFTC has traditionally had a lackadaisical approach to approving financial products, where other agencies are typically risk averse and out in much more rigor This has led to Congress itself banning futures products There are two futures contracts explicitly banned in the US, and another could easily ride into the tax reform bill
- buttcoinslol 9y agoI know about cornering the onion market and the Onion Futures Act, what is the other banned futures contract in the US?
- ringaroundthetx 9y agoBox office futures (Speculating on how many movie tickets would sell for a new movie, would be a great way to hedge and speculate) This was shut down by congress right before it started, last minute addition to the financial reform bill while simultaneously getting the all clear from cftc
- sseveran 9y agoThe article alludes to this at the end but doesn't talk the real reason head on. As these are leveraged products the banks are exposed to large swings in the contract price via various clearing mechanisms. So they are looking at the volatility and asking what happens when someone doesn't pay and we have to step in and cover them. BTC is a bit of a volatile underlying. If I was in clearing risk I would be worried too.
- deleted 9y ago[deleted]
- Ntrails 9y agoIt's a pretty big brake from the point of view of institutional investors. If none of my brokers offer access I simply can't trade it - it stops volume going through the futures. Futures volume will drive volume in the underlying if only as Sneaky Sneaky People attempt to arbitrage using the hilariously manipulable price of bitcoin
- minhaz23 9y agoCan you expand on that second paragraph?
- IncRnd 9y ago> Can you expand on that second paragraph? Futures stabilize the price of the underlying commodity.
- valarauca1 9y agoThe argument mostly boils down to that most rational actors will only tolerate a +/-N% change over the lifetime of a futures contracts So the average future contract +/-N% (overall futures) roughly becomes the maximum volatility you can see out an asset over that duration. If it is exceeded people may stop trading futures, lowering the number of swaps, and by extensions trades of that asset. Providing a method to -let steam out- of a volatile system. —— There are many examples against this (housing crisis 2008). The main example for is Chicago future exchange in the 70’s and 80’s http://www.econlib.org/library/Enc/FuturesandOptionsMarkets.html http://www.econlib.org/library/Enc/FuturesandOptionsMarkets....
- IncRnd 9y agoFrom the very link you posted, "Because futures contracts offer assurance of future prices and availability of goods, they provide stability in an unstable business environment."
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- downrightmike 9y agoIf Goldman has already created the futures system and darkpools etc, they can make money off of it and they intend to.
- dogma1138 9y agoGoldman is about to start selling CME Group’s bitcoin futures.
- sova 9y agoThe genesis block is weeping right now
- deleted 9y ago[deleted]
- colordrops 9y agoI think you are joking but I don't think this is out of line with the original vision. Wall Street still will not control the block chain, and there was never any intention of excluding anyone from its use.
- Nursie 9y agoAFAICT it'd not selling, but clearing - matching clients who wish to buy and sell, and takinga nice fee off the top.
- dogma1138 9y agoYes Goldman would be a clearing broker; by selling I meant more like offering these futures to their clients as a product, so selling was more in the retail meaning of selling a product/service than the financial one.
- irascible 9y agoFunny yesterday's bullish news about bc, and the accompanying spike to 19k, and today's bearish article, coinciding with a drop back to 15k. It's almost as if some large players are testing the waters on whether they can manipulate the price easily...
- rkagerer 9y agoBigger story: some CME brokers will offer access to their retail traders. NinjaTrader (US) and RBC (Canada) intend to.
- zhte415 9y agoThe retail investor is the time to sell. After they buy, who is there to sell to? Pick your peak... do unload.
- nivertech 9y agoIt's the first time I hear about "long-only futures", is this even legal? EDIT: I know it’s legal for equity options, where retail traders need to be eligible to be able to write options.
- tome 9y agoThey not "long-only" futures. One particular broker has decided they're going to let their customers have long positions in the future rather than short, that's all.
- zhte415 9y agoThese are synthetics. Why offer both side of the coin if you only believe in one side. If interested in Bitcoin have Bitcoin. If interested in synthetics buy this. Counterparty risk plus plus.
- VVayneTracker 9y agoSince QC will in all probability break wallets would there be any reason not to short BTC over say a 10 year time frame?
- davidw 9y agoThe only winning move is not to play. Spend time investing in yourself and your skills, and put your money in something like VTSMX, Vanguard's extremely low-overhead total stock market index fund.
- tfmatt 9y agoThe stock market has been proven to be rigged! The only winning move is not to play. Put your money in an FDIC insured monkey-market or savings account with no attached fees and a decent interest rate.
- trentmb 9y agoTreasury i bonds aren't bad either- there is a 10k limit though
- em3rgent0rdr 9y agothey barely keep up with inflation! (Arguably even fail to do that based on which consumer price index metric is used)
- kjrose 9y agoOnly play with what you are willing to lose. If it’s a pyramid scheme you could make a gamble and get out in time. If it’s legit you’ll be fine. If it’s a scam, whatever. You had fun. ;)
- kjrose 9y agoConsidering at this point I expect a lot of short contracts it’ll be interesting.