The Commodity Futures Trading Commission decision allows bitcoin derivatives to be offered on the Cboe Futures Exchange starting this weekend and on the world’s biggest futures venue, the Chicago Mercantile Exchange (CME), from December 18. Bitcoin transactions happen when heavily encrypted codes are passed across a computer network. Goldman Sachs, an FIA member, plans to clear bitcoin futures contracts for some clients, meaning it will serve as intermediary to enable transactions, a spokeswoman said. “Given that this is a new product, as expected we are evaluating the specifications and risk attributes for the bitcoin futures contracts as part of our standard due diligence process,” she said. In 2014 major Tokyo-based bitcoin exchange MtGox collapsed after admitting that 850,000 coins – worth around $480 million at the time – had disappeared from its vaults.

Source: New Strait Times December 07, 2017 22:41 UTC