CME derivatives contract | Bitcointalksearch.org

TheQuin

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Quote from: MisterPrada on January 02, 2018, 04:25:28 AM

This is the start of the tail trying to wag the dog. Their statement clearly implies they believe they are going to reduce bitcoin volatility with their circuit breakers on futures. I say Pffff

What statement implies that? That would be a misunderstanding of the purpose of circuit breakers. They are there to stop exaggerated market movements caused by high-frequency algorithmic trading. The presence of circuit breakers on the futures market cannot influence the underlying cash markets as in the case of the futures market being halted limit up or limit down it would not be possible to place an arbitrage trade.

MisterPrada

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This is the start of the tail trying to wag the dog. Their statement clearly implies they believe they are going to reduce bitcoin volatility with their circuit breakers on futures. I say Pffff

btcbtq

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Quote from: ember.suc on December 16, 2017, 08:44:02 AM

CME is no joke. They will look for a way to crash the price to something close to 3000 USD. Buy it very cheap and then hijack a cool some of the only deflationary currency ever created and then market turns to normal.. CME would never go into it at this price never..

I hope that you are wrong about this scenario, but it is a possibility. CME is getting into this space for a reason.

icanscript

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I am sure that futures trading is a way to keep investors' money from entering the bitcoin market. In the near future we will observe the conflict. The conflict between the real bitcoin and the financial fork.

bit32

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I dont think you understand the price action we have seen.
BTC to 3000 you are joking I assume. Worst case it could test 10k but the indicators say that is not going to happen
Institutional INvestors still believe this is just tulip mania from which to derive a few quick bucks. They dont get it because their generation had banking at its core. Its hard to let go of lifelong beliefs

ember.suc

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CME is no joke. They will look for a way to crash the price to something close to 3000 USD. Buy it very cheap and then hijack a cool some of the only deflationary currency ever created and then market turns to normal.. CME would never go into it at this price never..

bit32

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CME plans to have a 5 BTC contract... so its for large players only
they also plan to trip "circuit breakers" if the daily price changes > 20% (ridiculous)
They plan to run the exchange from 9-5 on weekdays iike the old open outcry S&P 500 (mindboggling)
S&P mini runs all the time, why shouldnt this?
they also require a 35% margin for a leveraged derivitive ??

This is 19th century thinking applied to a 21st century product.

BTC is a 24/7 market. BTC has volatility which is what makes it a great trading vehicle.

How do they plan to settle when it tanks 50% on Friday afternoon 30% on Saturday and 40% on Sunday?
Then Monday morning they open the exchange? absurd

When regulation hits, as it will, and these products are classified as securities, which they are, and owning them is a criminal offence, you are going to see retail investors PANIC. Whats CME going to do? Close up shop and go to the lake for the weekend...

Cannot wait to see what happens on Monday

rasl.curt

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As more and more people are getting acquainted with Bitcoin and other blockchain based projects the more is it helping Bitcoin establish its roots more firmly in the global financial system.CME being the world's largest derivatives exchange is not only opening doors for institutional investors but is also acting as a gateway for Bitcoin ETH which means more experienced investors entering the Bitcoin market.For a fact they have already affected Bitcoin’s market by being one of the major reasons behind this sudden boom in Bitcoin’s price that we are experiencing at present.

Samarkand

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Quote from: iamTom123 on November 09, 2017, 12:09:39 PM

... However, I also learn that this can mean that Bitcoin would be experiencing more volatility due to the fact that futures contract is actually a big type of speculation.
...

CME Group has already addressed this concern.

https://www.cnbc.com/2017/11/08/cmes-planned-bitcoin-futures-will-attempt-to-rein-in-big-price-swings.html

Quote

CME will implement special price fluctuation limits at 7 percent and 13 percent above or below the prior settlement price, and prevent trading outside the 20 percent range, according to details the exchange released Tuesday afternoon.

Therefore I think it is highly likely that the introduction of the Bitcoin futures will actually reduce bitcoin volatility. These limits are common with stock futures as well and therefore it isn´t really
that surprising. Nevertheless, I think the whole CME Group news is highly bullish for the BTC price and probably the best news of 2017 so far.

Theb

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I'm not familiar with how the USA companies work but I am pretty sure they are required to put up a disclosure firsthand on one of SEC's official website. On CME's bold move for BTC platforms, this is a major step for having a standardized derivative contract for Bitcoin, as the trading for it will be upgraded. If this will push through big industry might now participate in Cryptocurrency trading hopefully it will become more profitable for us.

Peter789

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Yes Tom. I too are excited.
As a blue collar worker I do not truly understand futures. Reguardless of how many times I read the definition.
However, I am aware of the consequences. I believe that if SEC passes futures, then next comes ETF.
That 'regulation' excuse can be overcome.
Oh. And as they say that btc are going to be an OTC (cash) future, then I presume it will be a physical future compared to a synthetic furture.

iamTom123

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Quote from: Peter789 on November 03, 2017, 07:28:32 PM

Derivatives giant CME have proposed contracts with BTC platforms. We are waiting for a decision from the SEC. We all know this could be a major step for BTC, and the first of many steps. Can somebody please tell me.Where do I go to learn of the SEC decision first off? I want to learn about this ASAP.

I am sure that CME would also be announcing it once SEC would have approved their application to established Bitcoin Futures Contracts in their derivative exchange. Once it is already official am sure that the whole Bitcoin can be celebrating because this one move can mean that the Wall Street is now looking at Bitcoin as another legitimate investment vehicle. However, I also learn that this can mean that Bitcoin would be experiencing more volatility due to the fact that futures contract is actually a big type of speculation.

Next year, we will be witnessing a very vigorous and robust Bitcoin due to many changes in the market and the coming in of new players in the Bitcoin ecosystem. The year 2018 - 2020 can be the three years when Bitcoin would be cementing its claim to be the new gold in digital form and at the same time the burgeoning digital currency accepted by more and more merchants worldwide. I am hoping that this optimism would be coming true despite the many challenges that Bitcoin can still be facing today.

CryptoBry

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Quote from: TagaMungkahi on November 06, 2017, 10:58:03 PM

They are going all out here huh. Will SEC accept their contract to operate? I doubt it. SEC is known for being a strict Commission on checking Bitcoin Tradingm it may take a lot of time on studying the contract, but who knows. Anyway, If SEC will approve this, a lot of ICOs will surely emerge and Businesses and Casual Investors will take a look for Cryptocurrency which is a good news for me.

I am sure that CME has already taken into consideration on the possibility that SEC may say no to its application and am sure that CME has a clout in SEC so there is a higher probability that it can get approved if not this year then at least in 2018. In fact, they are saying that futures can mean that soon we might have approved ETFs also in the market. This can definitely push the Bitcoin agenda further into the sky but we have to brace for more volatility (can be good but can also be bad depending on how we look at it).

Peter789

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http://insidebitcoins.com/news/argentinas-largest-trading-platform-plans-to-offer-bitcoin-futures/83742

TagaMungkahi

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They are going all out here huh. Will SEC accept their contract to operate? I doubt it. SEC is known for being a strict Commission on checking Bitcoin Tradingm it may take a lot of time on studying the contract, but who knows. Anyway, If SEC will approve this, a lot of ICOs will surely emerge and Businesses and Casual Investors will take a look for Cryptocurrency which is a good news for me.

CryptoBry

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I understand that there has been a brewing excitement including within the Bitocin community about this move from CME which is the world's biggest market for derivatives...they are about to introduce Bitcoin future contracts. Now, since it is requiring the approval of SEC first...am wondering how much is the chances for it to be approved considering that SEC had been turning down the past many applications for ETF. Le't see what can happen soon. We are hoping it can be approved but of course we all know that futures for Bitcoin can mean more speculations and volatility for the coin.

soham

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I have been seeing this news since last week about CME group will bring in bitcoin futures contract. That's a great step and I have seen the announcement in their website as well. You can check the below link for reference,

http://www.cmegroup.com/trading/bitcoin-futures.html

However, SEC approval is very much required before bringing any such products into the market. I think the below link will help you to get the information first off,

https://www.sec.gov/news/statements

I am sure you are planning to buy a huge amount of bitcoins just at the right time. Same here as well!

Peter789

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Derivatives giant CME have proposed contracts with BTC platforms.
We are waiting for a decision from the SEC. We all know this could be a major step for BTC, and the first of many steps.
Can somebody please tell me.

Where do I go to learn of the SEC decision first off? I want to learn about this ASAP.

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