Big news: Bitcoin may soon be making its way into derivatives markets.
Earlier today on CNBC, Terry Duff, chairman and CEO of the CME group, said that the recently announced bitcoin futures product may begin trading within the next month. In fact, he said that official trading could begin as early as the second week of December.
“I think sometime in the second week of December you’ll see our contract out for listing,” he told the network.
Announced in October, the headline made waves in the bitcoin community when it revealed that the CME group was seeking regulatory approval to list its first bitcoin-related product some time this year. In fact, the optimistic news caused quite an uptick within bitcoin’s price action at the time, sending its value soaring from $6,000 to over $7,000 on October 31st.
In the interview, Duffy also offered insight regarding exactly how CME would handle major fluctuations in bitcoin’s price. Among his comments, he suggested that CME could halt trading in the event of significant price swings, and that specific measures would be taken in the event of a substantial price decline.
“Listen, when someone says to me, ‘the price is going to zero, what are you going to do?’ I’m not going to let it go to zero,” he explained. “I’m going to implement something. If the market drops precipitously, we’ll stop trading, and if we think a product is going away, we have the longs, we have the shorts, we’ll match them up at a price and that’s the way our rules read today.”
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