Two Chicago-based exchanges to begin trading bitcoin futures in December

Bitcoin futures will begin trading on the Chicago Mercantile Exchange (CME) on December 18, after the exchange group filed a self-certification to the US commodity regulator CFTC.

US regulators have called for cryptocurrency contracts to be self-certified, requiring exchanges to take full responsibility for compliance with commodity laws and demanding a keener eye on contract detail.

The Chicago Board Options Exchange (CBOE) also filed a certification with the CFTC on Friday for the launch of its own bitcoin futures. While no official start-date was confirmed, CBOE contracts, which will trade on its CFE futures exchange under the XBT ticker, were made available for participant testing on November 13.

CME contracts require initial margin of 35 per cent, though that may be ramped up for end users as futures commission merchants add an additional margin layer. Variation margin will also be charged to cover daily mark-to-market moves.

“Though we have worked through a lengthy, comprehensive process with the CFTC to get to this point, we recognise bitcoin is a new, uncharted market that will continue to evolve, requiring continued collaboration with the Commission and our clients going forward,” CME Group chairman Terry Duffy said in a statement.

Offering bitcoin futures was a response to user demand and a reflection of the belief that digital currencies will grow worldwide in the decades to come, said Chris Concannon, president of CBOE Global Markets Inc, one of three venues that announced it will soon start offering the products.