CFTC issues new directives related to cryptocurrency derivatives

New guidelines for cryptocurrency platforms wishing to enter futures on Bitcoin and altcoins, published by CFTC.

The main regulator of US markets has issued new guidelines

The Commodity Futures Trading Commission (CFTC) has made public an additional measure for US-based crypto exchanges on Monday, May 21, 2018. These are practices to be followed when developing and launching new cryptocurrency derivatives.

The regulator has specifically advised cryptocurrency platforms to fully monitor the markets that provide the reference prices, in order to coordinate with CFTC staff.

The Division of Market Oversight (DMO) and the Division of Clearing and Risk (DCR)US regulator issued a "joint notice from staff that gives registered stock exchanges and clearing houses, the TCRC guidelines for the registration of derivatives virtual currency. " The opinion " clarifies the priorities and expectations of the general staffs of the CFTC in its review of the novel virtual currency, which will be listed. "

Prioritize risk management

"TCRC staff is committed to providing as much regulatory clarity as possible," said Amir Zaidi, Director of the Commission's DMO. "As the virtual money market continues to evolve, TCRC staff will seek to provide additional guidance to assist market participants, keep pace with innovation while complying with the rules of the marketplace. CFTC. "

Brian Bussey, director of the DCR echoed Zaidi's comments by saying:

TCRC staff provide this information, in part to assist market participants in their efforts, to develop risk management programs that take into account the new risks imposed by virtual money products. In addition, the guidance is designed to help ensure that market participants follow the appropriate governance processes for the launch of these products.

Some criticisms of the CFTC's negligence on the first Bitcoin futures contracts in December motivated the Commission to redouble its efforts . As volume increases and trade introduces smaller cryptocurrency products such as Ethereum Classic (ETC) or Ripple (XRP), markets will behave in a haphazard manner.

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