CFTC issues crypto derivative guidance

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The CTFC withstood some criticism for a lack of oversight of the bitcoin futures market after it began trading in December. Although trading has been “orderly” and relatively problem-free, some feel that this could change quickly, leading to manipulation and insider trading. So the CFTC issued a statement regarding future market treatment.

Quoted from the CCN article linked below.

Specifically, the CFTC advised trading venues that they must have the ability to monitor the integrity of the underlying spot markets that supply their pricing data, coordinate closely with CFTC staff, solicit comments from industry participants prior to launch, and engage in large trader reporting.

“The CFTC staff is committed to providing regulatory clarity as much as possible,” said Amir Zaidi, the director of the commission’s division of market oversight. “As the virtual currency market continues to evolve, CFTC staff will seek to provide additional guidance to help market participants keep pace with innovation while complying with CFTC regulations.”

“CFTC staff is providing this information, in part, to aid market participants in their efforts to design risk management programs that address the new risks imposed by virtual currency products,” added Brian Bussey, the director of the commission’s division of clearing and risk. “In addition, the guidance is designed to help ensure that market participants follow appropriate governance processes with respect to the launch of these products.”

https://www.ccn.com/cftc-issues-new-guidance-on-cryptocurrency-derivatives/
 
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