There is excellent news for almost all the individuals out there that CME Group has come over with the announcement as related to the launch of bitcoin trading: futures. They will be coming up with the launching as straight into the fourth quarter of 2017, pending with some of the associated regulatory review periods. This new contract will be based over on top of the CME CF Bitcoin Reference Rate (BRR). In simple, we would say that this agreement would finally be serving out with the one-day reference rate for U.S. dollar price of bitcoin.
For the information of the readers, we would like to mention that since November 2016, CME Group and Crypto Facilities Ltd had overall calculated and published with BRR. This will be aggregating the trade flow measurement as about some of the important bitcoin spot exchanges areas. This might happen over the time – the Dollar price of one bitcoin as of 4:00 p.m. London time.
The Main Purpose of Designing BRR:
BRR has explicitly been designed as for IOSCO Principles. In these principles, we would be mentioning up with the financial Benchmarks. Bitstamp, GDAX, itBit, and Kraken are known out to be part of constituent exchanges that was somehow showing their major contributions in the pricing date to calculate the BRR.
Dr Timo Schlaefer who is the CEO of Crypto Facilities has mentioned in one of his statements that we are much anxious to work along with CME Group as in favour of this product. BRR has been witnessed to be used for the range of settlement mechanism as about this major product. BRR has been specifically contributed to the qualities that make it come out to be reliable and often transparent in reflecting the global bitcoin-dollar trading. It has undoubtedly made itself one of the first choices of the financial centres as well as trading firms and in the data providers all over the world.
Crypto Facilities Ltd. And CME Group did come about with the publishing of the CME CF Bitcoin Real-Time Index (BRTI). It does play a vital role where it is providing the wholesome price transparency to encounter the bitcoin trading marketplaces. BRTI has been making an extensive use of the global demand right which it would be able to buy and sell the bitcoin into the consolidated order book. This BRTI is also published in the condition of real-time and is suitable for marking portfolios and even in terms of executing intra-day bitcoin transactions and the risk management.
As it is all evidence that there are so many options of Bitcoin review futures inside the marketplaces that would be soon coming into the way. Just as after the course of signing the exclusive BTC market data dealing with the Gemini Exchange in August; CBOE’s CEO Ed Tilly it was stated that the company and so as his team is looking much forward in response to the immediate growth of the interest in cryptocurrencies right through the creation of the bitcoin futures as being traded on top of the regulated exchanges.
It does offer some of the greatest benefits to the users namely transparency as well as price discovery and deep liquidity and centralized clearing. It is to be highlighted that over the past few years the Cryptocurrency market capitalization has raised up to the level of $172 billion is where the Bitcoin trading is making the representation of about 54% of the total or even $94billion. Overall, we would bring the concluding fact that this bitcoin spot market has roughly grown to the amount of $1.5 billion in notional value each day.
To Sum Up:
This was the end of the comprehensive discussion about how Bitcoin trading CME group will be bringing closer the launch of Bitcoin futures soon for the market holders. It would be much improved and enhanced with its features provision.
What do you think?