Tokyo Financial Exchange To List Bitcoin Futures "As Soon As Possible"
Once the domain of experimental exchanges, futures contracts are the hallmark of mainstream attention focusing on Bitcoin. After CBOE, a Tokyo-based exchange plans to launch futures.
In a week, Bitcoin futures would launch on the CBOE markets- and Tokyo Financial Exchange would follow soon after.
"Once the Financial Instruments and Exchange Act recognizes cryptocurrencies as financial products, we will list the futures as quickly as possible," said Tokyo Financial Exchange’s Shozo Ohta.
The announcement suggests Japan may further evolve its Bitcoin legislation, to recognize cryptocurrencies as a form of financial products.
Japan is way ahead of the game, with already 15 licensed exchanges coming online, and BitFlyer the leader of the pack.
Bitcoin futures would sell contracts to bet on the Bitcoin price, usually within a 20% range from the settlement price quoted by the exchange. Trading Bitcoin futures does not mean owning Bitcoin, and may not increase demand, as the futures would be cash-settled.
For now, the CME Group, the first to announce plans for a futures product, has not announced a clear date, although a probable launch around December 18 is possible, and the date of December 10, announced in error, will not see the market futures.
Cryptovest
Tokyo Financial Exchange To List Bitcoin Futures "As Soon As Possible"
Once the domain of experimental exchanges, futures contracts are the hallmark of mainstream attention focusing on Bitcoin. After CBOE, a Tokyo-based exchange plans to launch futures.
author by Christine Masters , 05 December
articleStartImage
In a week, Bitcoin futures would launch on the CBOE markets- and Tokyo Financial Exchange would follow soon after.
"Once the Financial Instruments and Exchange Act recognizes cryptocurrencies as financial products, we will list the futures as quickly as possible," said Tokyo Financial Exchange’s Shozo Ohta.
The announcement suggests Japan may further evolve its Bitcoin legislation, to recognize cryptocurrencies as a form of financial products.
Japan is way ahead of the game, with already 15 licensed exchanges coming online, and BitFlyer the leader of the pack.
Bitcoin futures would sell contracts to bet on the Bitcoin price, usually within a 20% range from the settlement price quoted by the exchange. Trading Bitcoin futures does not mean owning Bitcoin, and may not increase demand, as the futures would be cash-settled.
For now, the CME Group, the first to announce plans for a futures product, has not announced a clear date, although a probable launch around December 18 is possible, and the date of December 10, announced in error, will not see the market futures.
At the same time, the Bitcoin markets may have their own logic as of December 10, either propping up Bitcoin to new heights, or causing another sharp move.
The Tokyo-based exchange has not yet offered rules for trading Bitcoin futures, but there is a general idea how the contracts would work. Both CBOE and CME have higher margin demands. Buyers of Bitcoin futures would have to supply 35% margins for CME and 33% for CBOE futures, to compensate for volatility. Some have suggested that since Bitcoin is electronic, there may be futures with a physical delivery.
The margin amount could even be raised, to ensure that the clearing house would not run out of funds.
NASDAQ also plans futures with similar features, as mainstream market operators aim to attract investors as the go-to market offering the best conditions and liquidity.
In any case, the next month would show how the futures market behaves for an asset that has moved up to 50% up or down in the span of a month, with dramatic upticks and sharp drops.
Opening up a market for futures would also lead the way for a more stable Bitcoin-based ETF, an exchange-traded fund based on an asset.
by Christine Masters
https://cryptovest.com/news/tokyo-financial-exchange-to-list-bitcoin-futures-as-soon-as-possible/