In the latest statement noted by the Chicago Mercantile Exchange (CME) Chairman and CEO Terry Duffy suggest that the decision to list the bitcoin futures in the final quarter of 2017 was acted on, to intentionally provide a successful technology to wealthy investors to aid develop them.
The breakdown on Bitcoin Futures by CME’s Chairman and CEO
According to bitcoin.com Scarlet Fu asked, “Did the long practice of self-certification within the commodities exchange industry force out or exclude important players such as Goldman Sachs, for example, who were then saddled with bitcoin futures they clearly didn’t want, poisoning the well?” And CME Chairman Terry Dutty responded instantly, “No”
He further stressed his point narrating that the institution takes ample time in engaging with their customers, outlining all their products, teaching them about the institution’s vision. As well as, the institution paying close attention, to the competitive nature of the industry. Bitcoin was rapidly formed largely due to the self-certification process.
In the past week, bitcoin skyrocketing price has fallen and risen in a frequent cycle in relation to the constant questions surrounding the process of self-certification. This followed by it being the focal point of the authorities’ premiere meeting of the year, in attendance CME and close rival, Chicago Board Option Exchange (Cboe) were called upon to testify against the norm which is directly opposite the standard stocks and their tough overseer, the Securities and Exchange Commission (SEC).
In efforts to emphasize his point to Ms. Fu of Bloomberg, Mr. Buffy elaborated that their Bitcoin Futures merchandise need not have to follow the half a year process ( many individual(s) are capable of viewing your intellectual property and do an exact replicant). He then narrated that their securities were entirely different in comparison to the Securities model. He noted the viability of the self-certification process and due to the distinct feature of the product, regulators worked closely with the company.
Bitcoin an Establish Technology
In light of Cboe being the first mover in the bitcoin futures listing race, CME became a major contributor to the authentication of the virtual currency transparency and resiliency coming in second a week later. CME is a big-time financial institution in which it possesses numerous exchanges and in amongst its assets is the Dow Jones index.
In addition to the self-certification concern, Mr. Duffy agrees with the decision to go ahead with a bitcoin future listing stating “At the same time, and I said this on my earnings call this morning, this product has been around for nine years. It’s not like it just showed up yesterday. Volatility [in traditional markets] has been low the last couple of years. What has not been low in volatility? It’s been bitcoin. People are clamoring for some kind of [volatility]. All the sudden this product becomes very much front page news. We’ve all been talking about bitcoin, and there’s been a lot of conversation about.”
CME also explain that they are in business to manage risk and not to increase risk and the conversation mostly changed to volatile and risk. He also sighted that under no circumstance should the high margin of 43 percent lower.