On Listing Cryptocurrency Derivatives, CFTC Publishes Advisory

Providing guidance pertaining to the assessment and listing of cryptocurrency derivatives, the United States Commodity Futures Trading Commission (CFTC) has issued an advisory for exchange and clearinghouse.

Regarding Cryptocurrency Derivatives, CFTC Issues Advisory

The CFTC’s Division of Market Oversight (DMO) and Division of Clearing and Risk (DCR) have published a “joint staff advisory that gives exchanges and clearinghouses registered with the CFTC guidance for listing virtual currency derivative products,” as reported by NewsBitcoin.com. In addition to offering guidance concerning “listing a derivative contract based on virtual currency,” the advisory makes it clear that in its review of new virtual currency derivatives to be listed, the CFTC staffs’ priorities and expectations, according to NewsBitcoin.com

The DMO director, Amir Zaidi noted that CFTC staff will seek to provide additional guidance to help market participants keep pace with innovation while complying with CFTC regulation, as the virtual currency market continues to evolve. Moreover, committed to providing regulatory clarity as much as possible is the CFTC staff, as indicated by NewsBitcoin.com.

The advisory precisely showcases requirements concern with risk management, outreach to market participants, larger trade reporting, coordination with CFTC staff and enhanced market surveillance as reported by NewsBitcoin.com.

The DCR director, Brian Bussey stress that in their efforts to design risk management programs that address the new risk impose by virtual currency products, CFTC staff is providing this information, in part, to aid market participants. Additionally, in attempts to help ensure that market players follow suitable governance procedure regarding the launch of these products, the guidance was design, NewsBitcoin.com reports.

At NASAA, CFTC chairman discusses Advisory

During a recent speech at the North American Securities Administrators Association (NASAA) conference, the CFTC chairman, Christopher Giancarlo, the CFTC chairman mentioned the guidance for cryptocurrency derivatives.

The CFTC was described as having “been at the regulatory horizon on virtual assets” and noted that the CFTC staff advisory takes into consideration, based on the firm expanding experience with virtual currency derivatives, the CFTC staff’s current thinking, according to NewsBitcoin.com.

In addition to the above, the CFTC chairman noted that to address any new and emerging issues, as necessary, staff will reevaluate and revisit the advisory, as new products are brought forth, as reported by News.Bitcoin.com respectively


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