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News Release
CME Group Announces Launch of Bitcoin Futures
Tue Oct 31 2017
CHICAGO, Oct. 31, 2017 /PRNewswire/ -- CME Group, the world's leading and
most diverse derivatives marketplace, today announced it intends to launch
bitcoin futures in the fourth quarter of 2017, pending all relevant
regulatory review periods.
The new contract will be cash-settled, based on the CME CF Bitcoin Reference
Rate (BRR) which serves as a once-a-day reference rate of the U.S. dollar
price of bitcoin. Bitcoin futures will be listed on and subject to the
rules of CME.
"Given increasing client interest in the evolving cryptocurrency markets, we
have decided to introduce a bitcoin futures contract," said Terry Duffy,
CME Group Chairman and Chief Executive Officer. "As the world's largest
regulated FX marketplace, CME Group is the natural home for this new vehicle
that will provide investors with transparency, price discovery and risk
transfer capabilities."
Since November 2016, CME Group and Crypto Facilities Ltd. have calculated
and published the BRR, which aggregates the trade flow of major bitcoin spot
exchanges during a calculation window into the U.S. Dollar price of one
bitcoin as of 4:00 p.m. London time. The BRR is designed around the IOSCO
Principles for Financial Benchmarks. Bitstamp, GDAX, itBit and Kraken are
the constituent exchanges that currently contribute the pricing data for
calculating the BRR.
"We are excited to work with CME Group on this product and see the BRR used
as the settlement mechanism of this important product," said Dr.Timo
Schlaefer, CEO of Crypto Facilities. "The BRR has proven to reliably and
transparently reflect global bitcoin-dollar trading and has become the price
reference of choice for financial institutions, trading firms and data
providers worldwide."
CME Group and Crypto Facilities Ltd. also publish the CME CF Bitcoin Real
Time Index (BRTI) to provide price transparency to the spot bitcoin market.
The BRTI combines global demand to buy and sell bitcoin into a consolidated
order book and reflects the fair, instantaneous U.S. dollar price of
bitcoin in a spot price. The BRTI is published in real time and is suitable
for marking portfolios, executing intra-day bitcoin transactions and risk
management.
Cryptocurrency market capitalization has grown in recent years to $172
billion, with bitcoin representing more than 54 percent of that total, or $
94 billion. The bitcoin spot market has also grown to trade roughly $1.5
billion in notional value each day.
For more information on this product, please visit
http://www.cmegroup.com/trading/bitcoin-futures.html
As the world's leading and most diverse derivatives marketplace, CME Group (
www.cmegroup.com) is where the world comes to manage risk. Through its
exchanges, CME Group offers the widest range of global benchmark products
across all major asset classes, including futures and options based on
interest rates, equity indexes, foreign exchange,energy, agricultural
products and metals. CME Group provides electronic trading globally on its
CME Globex platform. The company also offers clearing and settlement
services across asset classes for exchange-traded and over-the-counter
derivatives through CME Clearing. CME Group's products and services ensure
that businesses around the world can effectively manage risk and achieve
growth.
CME Group, the Globe Logo, CME, Chicago Mercantile Exchange, CME Direct and
Globex are registered trademarks of Chicago Mercantile Exchange Inc. All
other trademarks are the property of their respective owners.
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