CME Group launches crypto futures contracts

Tuesday 6 September 2022 13:11 CET | News

US-based CME Group, a derivatives marketplace, has launched Bitcoin Euro and Ether Euro futures to provide institutional clients with more precise and regulated tools to trade crypto.


As representatives say, the launch of these new futures contracts builds on the growth and deep liquidity the company has seen in its existing US dollar-denominated Bitcoin and Ether futures contracts.

Bitcoin Euro and Ether Euro futures contracts will be sized at five Bitcoin and 50 Ether per contract. These new contracts will be cash-settled, based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, which serve as once-a-day reference rates of the euro-denominated price of Bitcoin and Ether. These new futures contracts will be listed on and subject to the rules of CME.

As a derivatives marketplace, CME Group allows clients to trade futures, options, cash and OTC markets, optimise portfolios, and analyse data – helping market participants worldwide to manage risk and capture opportunities. CME Group exchanges offer a range of global benchmark products across major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec, and foreign exchange trading on the EBS platform. In addition, it operates one a central counterparty clearing providers, the CME Clearing.

Crypto trading on the rise

Back in August US-based post-trade financial services company DTCC, which processes most trades in the US stock market, has launched a private blockchain project aimed at settling trades more quickly for clients.

Project Ion, as it is called, is designed to support T+0, or end of day, settlement cycles by using blockchain technology. Currently, stock market trades take two days to settle, although the Securities and Exchange Commission (SEC) proposed speeding this up in February 2022 in the wake of highly volatile meme stock trading.

US-based CME Group, a derivatives marketplace, has launched Bitcoin Euro and Ether Euro futures to provide institutional clients with more precise and regulated tools to trade crypto.


The need for security

While blockchain is considered by some as a safe alternative to traditional finance, data still rules the game. Therefore eight US national trade groups have recently petitioned the Consumer Financial Protection Bureau (CFPB) to initiate a rulemaking to strengthen the privacy and security of consumer financial data held by fintechs, bigtech, and data aggregators.

The filing marks the first time any of the groups have utilised the CFPB's petition process since it was updated in February 2022. The Bureau is currently engaged in a rulemaking under Section 1033 of the Dodd-Frank Act, which will establish standards for sharing consumer financial data, typically through third parties, in a secure and transparent manner that gives consumers control.

Financial institutions must meet significant data privacy requirements under federal law and are monitored for compliance with all consumer protection laws and regulations through the CFPB’s close supervision. Data aggregators will be covered by the Section 1033 rule, but not subject to CFPB supervision, leaving a significant gap in protection for consumers.

In the petition, the trade groups argue the 1033 regulation will be incomplete without consistent oversight of these tech firms that serve as intermediaries for consumer financial data and urge the CFPB to initiate a rulemaking to define ‘larger participants’ in the data aggregation services market that should be subject to ongoing supervision by the Bureau for compliance with the rule when it is final, according to the official press release.

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Keywords: cryptocurrency, investment, trading platform, blockchain
Categories: DeFi & Crypto & Web3
Companies: CME Group
Countries: United States
This article is part of category

DeFi & Crypto & Web3

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