CFTC May Approve Ethereum Futures, ETH Surges 8%

The U.S. Commodity Futures Trading Commission (CFTC) is willing to approve Ethereum futures contract provided they receive relevant applications …

The U.S. Commodity Futures Trading Commission (CFTC) is willing to approve Ethereum futures contract provided they receive relevant applications which tick all the required boxes.

I think we can get comfortable with an Ether derivative being under our jurisdiction,” said the CFTC Insider. “A derivatives exchange comes to us and says ‘we want to launch this particular product.’ … If they came to us with a particular derivative that met our requirements, I think that there’s a good chance that it would be [allowed to be] self-certified by us,” he added.

It is rumored that the CBOE (Chicago Board Options Exchange) May Be Gearing Up To Offer Ethereum Futures.

The news indicates:

  1. CFTC’s desire to approve a new relevant Futures Contract.
  2. Ethereum is positioned next to Bitcoin in the Futures Contract Pipeline.
  3. Ethereum contract would be a shot in the arm to the Ethereum Community.
  4. CFTC will have a regulatory hold on the Top 2 cryptocurrencies.

The CFTC has been showing an interest in Ethereum since last year, when, on December 11, 2018, it rolled out an RFI (Request for Information) to seek Public Comments on Ethereum’s Mechanics and Markets in order to better inform the Commission’s understanding of the technology, mechanics, and markets for virtual currencies beyond Bitcoin, namely Ether and its use on the Ethereum Network.

The RFI consisted of 25 questions on the below categories:

  • Purpose and Functionality
  • Technology
  • Governance
  • Markets, Oversight, and Regulation
  • Cyber Security and Custody

It is to be noted that, Bitcoin Futures was the first to be approved by the CFTC, when, on December 1, 2017, it published a statement that the Chicago Mercantile Exchange Inc. (CME) and the CBOE Futures Exchange (CFE) self-certified new contracts for bitcoin futures products, and the Cantor Exchange (Cantor) self-certified a new contract for bitcoin binary options.

The Bitcoin futures might have caused the Bull Run of 2017, however, it might have also lead to the Price Decline of Bitcoin (BTC) when the price dropped from 20000 USD to 6200 USD.

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ETH Spearheads Crypto Market on Encouraging Ethereum Futures News

Today, the cryptocurrency market is being spearheaded by Ethereum – the second largest cryptocurrency by market cap has seen an impressive 8.7% …

While cryptocurrencies can display strong swings without any apparent fundamental trigger, it’s possible today’s ETH run was catalyzed by positive news regarding the attitude of U.S. regulatory agency CFTC (Commodity Futures Trading Commission) towards the idea of Ethereum futures being traded on a regulated U.S. exchange.

CFTC-regulated Ethereum futures might not be too far away

Earlier today, CoinDesk published a report citing an unnamed CFTC senior official as saying that the agency would be comfortable with approving an ETH futures contract for trading if it meets the agency’s requirements:

“A derivatives exchange comes to us and says ‘we want to launch this particular product.’ … If they came to us with a particular derivative that met our requirements, I think that there’s a good chance that it would be [allowed to be] self-certified by us.”

Let’s recall that late last year, the CFTC requested public feedback on both Ethereum as a public blockchain network and ETH as a digital asset.

While the first Bitcoin futures contracts approved by the CFTC already went live in December of 2017 on both the CME and CBOE exchanges, the context is slightly more complicated when it comes to Ethereum. Bitcoin is almost universally being viewed as a commodity, while a case can be made that ETH is a security – unlike BTC, which anyone was able to mine from the start, ETH was initially offered through an initial coin offering (ICO).

Still, even though the SEC, the chief U.S. securities regulator, hasn’t come out with a definitive stance on Ethereum, the director of the agency’s Division of Corporation Finance, William Hinman, stated in a June 2018 speech that he does not believe that ETH is a security in its current state.

If a regulated Ethereum futures contract does indeed come to the U.S. market, it has the potential to open up the market to a class of investors that are not comfortable with existing marketplaces for speculating on the price of ETH.

The demand for crypto futures is certainly there – even though CBOE has decided to stop offering new Bitcoin futures, its larger competitor CME saw record trading volume on its cash-settled Bitcoin futures just a month ago with around $546 million in notional trading volume in a single day.

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CFTC May Approve Ethereum Futures

The US Commodity Futures Trading Commission says it’s willing to approve Ether futures contracts as long as proposals meet all the regulator’s …
Media TeamMay 6, 2019 4:31 PM
May 6, 2019 4:31 PM
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The US Commodity Futures Trading Commission says it’s willing to approve Ether futures contracts as long as proposals meet all the regulator’s requirements. If approved, these futures could give investors access to a new derivatives product, ease retailer concerns over accepting crypto, and solidify the CFTC’s authority in the crypto industry.

Read the full article here.

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April 2019: Welcome to the New WatersTechnology

For 25 years, Waters has stood at the intersection of financial technology and data, directing readers to the correct highway of information that they …

For 25 years, Waters has stood at the intersection of financial technology and data, directing readers to the correct highway of information that they need to do their jobs. Today, with the new-look WatersTechnology—incorporating the former Inside Data Management magazine—we’re doing that and more, combining our trading technology and data insights in one place to bring you what we hope you’ll view as the “fintech bible.”

Ever since the emergence of electronic markets, technology—from traders’ execution systems and now algorithmic trading applications through risk management to back-office clearing and settlement functions—has had a symbiotic relationship with the data that powers it: One cannot exist without the other, and this new magazine reflects that.

Fittingly, several of the articles in this first combined issue address the over-arching theme of the last decade, which continues to exercise an enormous influence on financial firms’ technology and data strategies and spend: regulation.

A perfect example of the impact of regulation on data and technology is the Securities and Exchange Commission’s new N-PORT form for funds reporting. Though the form does not necessarily ask for new data points, it does require more data, and for that data to be reported more frequently than in the past. To achieve this, financial firms must locate and pull together datasets that previously didn’t need to communicate, and have needed to employ automated data capture mechanisms to eliminate manual processes that would not have been efficient under the new requirements.

With regulatory compliance—and its impact on technology—a costly burden, it’s no surprise that the profile this month is a lawyer: Nausicaa Delfas, head of international at UK regulator the Financial Conduct Authority (FCA), who is tasked with heading its policy on Brexit and implementing a technology roadmap that will give the FCA confidence in its ability to fulfill its regulatory obligations outside the auspices of the European Union.

US regulator the Commodity Futures Trading Commission is also feeling confident about its ability to meet the challenges ahead—the result of a budget increase to $281 million for this year, $86.5 million of which is for the agency’s Office of Data and Technology. CFTC chair J. Christopher Giancarlo, who is expected to step down this year, says the budget will allow the agency to become the quantitative, big data-focused regulator that it needs to be, to oversee firms with far greater resources in this area than its own.

Whether you’re a regulator, bank, asset manager, exchange, vendor or any other participant in today’s complex capital markets ecosystem, as you stand at this intersection of technology, data and regulation, searching for the correct route forward, WatersTechnology stands beside you as a trusted partner to help navigate these uncertain highways, and we look forward to accompanying you on your fintech journey.

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Craig Wright In An Official Statement To CFTC Says He Is Satoshi Nakamoto

The recent claim is not the first time he will be claiming to be Satoshi Nakamoto. Craig had claimed, with evidence in the past that he is the real …
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Through a recently filed official statement to the Commodity Futures Trading Commission [CFTC], the controversial Australian Crypto developer claims to be Satoshi Nakamoto. The filing means he is officially willing to swear under an oath that he is Satoshi Nakamoto.

Craig Wright’s Revelation

In response to the request of the CFTC for information about asset mechanics and markets on its official website, Craig Wright stated that he is the real Satoshi Nakamoto. This was picked up by Reddit members and CNBC’s Ran Neuner.

Craig noted that he had started the BTC project since 1997 and the Australian government apparently supported it. He also stated fraud prevention efforts motivated the project. Craig further claimed that there is a lot of misinformation about him and he criticised the ICO market as being designed primarily for scams.

Recently, Craig was involved in the hard fork of Bitcoin Cash’s blockchain to create Bitcoin Cash SV (Satoshi Vision). The recent claim is not the first time he will be claiming to be Satoshi Nakamoto. Craig had claimed, with evidence in the past that he is the real Nakamoto. However, this has been debunked over time.

The recent claim has also been met with more doubts from the crypto community. A tweeter user responded to Craig’s tweet saying; “We are all Satoshi. Except for Craig Wright.”

One Too Many Satoshis’

Recently, Amaury Sechet, the self-described “benevolent dictator” of the Bitcoin ABC (primary) implementation of BCH, claimed he is also Satoshi Nakamoto. His claim was greeted with doubts and rejections like the previous claim by Craig Wright.

Who’s The Real Satoshi

Satoshi Nakamoto is the name used by the unknown person or people who developed Bitcoin, authored the bitcoin white paper, and created and deployed bitcoin’s original reference implementation. His nationality is claimed to be Japanese by some, and American by others.

Unveiling the identity of the real Satoshi Nakamoto has been a concern for the crypto community, despite the claims of some to be the real Nakamoto.

The identity of the creator of the top valued cryptocurrency, Bitcoin has been shrouded in secrecy since it was created over ten years ago. Attempts at unravelling the identity of the real Nakamoto has made some in the crypto space to employ the service of a private detective. However, their effort is yet to be productive.

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