CME Group has revealed its plans to launch bitcoin futures in the fourth quarter of 2017, pending all relevant regulatory review periods.
According to the official release, the new contract will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR).
"Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract," said Terry Duffy, CME Group Chairman and Chief Executive Officer. "As the world's largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities."
Last November, CME Group officially launched bitcoin price indices, CME CF Bitcoin Reference Rate (BRR) and CME CF Bitcoin Real Time Index (BRTI), developed in collaboration with digital assets trading platform Crypto Facilities Ltd.
BRR serves as a once-a-day reference rate of the U.S. dollar price of bitcoin. It is designed around the IOSCO Principles for Financial Benchmarks. Bitstamp, GDAX, itBit and Kraken are the constituent exchanges that currently contribute the pricing data for calculating the BRR.
"We are excited to work with CME Group on this product and see the BRR used as the settlement mechanism of this important product," said Dr.Timo Schlaefer, CEO of Crypto Facilities. "The BRR has proven to reliably and transparently reflect global bitcoin-dollar trading and has become the price reference of choice for financial institutions, trading firms and data providers worldwide."
