CBOE to Begin Bitcoin Futures Trading on December 10

Posted December 05, 2017

Cboe Global Markets Inc will launch trading in its bitcoin futures contract on december 10, just over a week ahead of rival CME Group Inc.

The Chicago Board Options Exchange (CBOE) has announced that its planned bitcoin futures product will begin trading on December 10.

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The bitcoin futures, which will trade under the ticker "XBT", will be cash-settled contracts based on cryptocurrency exchange Gemini's auction price, Cboe said on Monday. In a press release today, CBOE announced it will offer the service to traders beginning Sunday, December 10 at 5 pm CT.

CME and CBOE have also agreed to enter into data-sharing agreements, particularly on the settlement process, so the CFTC can conduct its own surveillance on the new financial contracts. "We are committed to encouraging fairness and liquidity in the bitcoin market", said Ed Tilly, chairman and CEO of Cboe Global Markets, in a statement.

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Last week, a JPMorgan global markets strategist forecast that the introduction of bitcoin futures would legitimize cryptocurrency in the eyes of both institutional and retail investors, transforming the cryptocurrencies into "an emerging asset class".

It means that investors will be able to buy and sell "future" contracts in Bitcoins - an agreement to buy the crypto-currency, for example, in three months time at a certain price.

On the USA -based Bitfinex exchange, fell to $11,131, down $31, or 0.28% after hitting an all-time high of $11,843 earlier in the session. The first bitcoin futures contracts on a regulated USA exchange are set to launch on Sunday.

The announcement from the Commodity Futures Trading Commission (CFTC) that it will allow the futures to be traded was seen as a watershed moment for the currency.