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Bitcoin rebounds after U.S. regulator gives green light to futures contracts

01 December 2017

"More importantly, it brings a wave of regulatory oversight". Meanwhile, the Cantor Exchange has self-certified a contract pertaining to bitcoin binary options.

Cboe President Chris Concannon said: "The launch of the futures will actually make the market healthier".

It has been a volatile week for the biggest and best-known cryptocurrency.

Bitcoin's rapid rise from less than $800 in December a year ago to more than $11,000 this week on Coindesk has stoked fears that it is a pricing bubble that could leave recent investors worse-off.

CME announced on Friday its new bitcoin futures contract will be available for trading on December 18.

The Commodity Futures Trading Commission (CFTC) held "extensive" discussions with the exchanges, and CME and Cboe agreed to put "significant enhancements" in place to protect customers, including initial margin requirements of between 35 per cent and 40 per cent.

Traffic-weary Chinese man fined for repainting road lines
Authorities later ordered maintenance workers to remove Cai's handiwork from the road, but police released him after fining him. When asked why he had taken such a measure, the young man replied he was sick and exhausted of the endless traffic jams.

"We expect that the futures exchanges, through information sharing agreements, will be monitoring the trading activity on the relevant cash platforms for potential impacts on the futures contracts' price discovery process, including potential market manipulation and market dislocations due to flash rallies and crashes, and trading outages", he said in a statement.

A Bitcoin (virtual currency) coin is seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, June 23, 2017.

In a separate release Friday, Cboe said it has filed a product certification with the Commodity Futures Trading Commission to offer bitcoin futures trading.

"Nevertheless", Giancarlo added, "investors should be aware of the potentially high level of volatility and risk in trading these contracts". This will allow individuals to bet on the value of the cryptocurrency without investing in it directly.

Bitcoin has taken another step toward the financial mainstream, after a USA regulator said it would let two traditional exchanges begin trading in Bitcoin-related financial contracts.

"With price movements of this size, the bitcoin is the ideal antidote to the historically low volatility of today's traditional markets".

Bitcoin rebounds after U.S. regulator gives green light to futures contracts