Bitcoin Futures Trading On Wall Street Arrives Via CME – Will Start Dec. 18

Investing, News | December 1, 2017 By:

The CME Group has been given the green light by a federal regulator to start trading bitcoin futures this month. It marks the first time a digital currency will be traded on a Wall Street exchange and subject to government oversight.

CME is the owner of the Chicago Mercantile Exchange. It will start trading bitcoin futures on Dec. 18, using a process called “self-certification,” in which an exchange vows that new instruments will not break any federal securities laws.

The Commodities Futures Trading Commission, which regulates exchanges like CME, gave its approval after a month-and-a-half of negotiations.

Bitcoin futures prices will be based on the price at four major exchanges – Bitstamp, GDAX, itBit and Kraken. THe futures will have higher margin levels and intraday price limits because of the digital currency’s volatility, CME said.

Bitcoin’s single-coin pricing has just completed what may be its most volatile week ever, swinging from as low as $8,500 per single coin to its late afternoon mark of over $11,000, with many stops in-between.