Chicago Mercantile Exchange to launch Bitcoin futures on Dec 18

CME Group Inc. (Chicago Mercantile Exchange) has announced it will launch its bitcoin futures contract on December 18 on the Chicago Mercantile Exchange after the offering was approved by United States regulators.

“We are pleased to bring Bitcoin futures to market after working closely with the CFTC [Commodity Futures Trading Commission] and market participants to design a regulated offering that will provide investors with transparency, price discovery, and risk transfer capabilities,” CME Group CEO Terry Duffy stated in a statement on its website. He added that since the cryptocurrency still represents an “uncharted” market, the futures contract will be “subject to a variety of risk management tools, including an initial margin of 35 percent, position and intraday price limits, and a number of other risk and credit controls.”

In October, the Chicago-based exchange first announced it intends to offer cash-settled bitcoin futures based on the CME CF Bitcoin Reference Rate by the end of the year.

Related; PwC Accepts First Bitcoin Payment for its advisory services