Above all, we just got the first - ever Bitcoin futures — a government -
regulated financial derivative of Bitcoin which recognizes it as a legitimate asset class.
Consensus is nearly universal that the failure to
regulate financial derivatives trading and the subsequent explosion of credit default swaps, by passing the Commodity Futures Modernization Act, was a mistake.
Not exact matches
Fearful that
derivatives were becoming a threat to the
financial system, Born wanted to
regulate them but was stiff - armed by Alan Greenspan and Robert Rubin.
In the 1990s he fought efforts to
regulate derivatives — that once - opaque corner of the
financial market where mortgage - backed securities and credit default swaps, at the centre of the
financial meltdown of 2008, were flourishing.
In February the French
financial markets regulator Autorité des marchés financiers (AMF) published a statement that the
derivatives on cryptocurrencies should be
regulated under the new
financial reforms in the EU.
France's Autorité des marchés financiers (AMF) announced February 22 that cryptocurrency
derivatives should be
regulated just like any other
financial instrument and therefore online platforms offering these are included under the new Markets in Financial Instruments Directive (M
financial instrument and therefore online platforms offering these are included under the new Markets in
Financial Instruments Directive (M
Financial Instruments Directive (Mifid II).
I actually think something else is going on here — rather than talking about
regulating the
financial sector, the government and the Bank are signaling that they are willing to provide lender - of - last - resort assurances to those who sell or engage in
derivative financial products, of which the asset - back mortgage and commercial debt are but two examples.
For example, if Bitcoin is not a currency, then Bitcoin forwards and Bitcoin swaps that involve the exchange of Bitcoin for another currency will not fall under the statutory definitions of the more lightly
regulated foreign exchange forwards or foreign exchange swaps.10 Likewise, retail trading of Bitcoin
derivatives will be limited to designated contract markets, rather than subject to the retail foreign exchange dealer regulations.11 Treating Bitcoin as a commodity that is not a currency dovetails with the stances taken by other U.S. regulators such as the
Financial Crimes Enforcement Network (FinCEN)(virtual currency does not have all of the attributes of real currency) 12, the Securities and Exchange Commission (Bitcoin investments are investment contracts because Bitcoin is a form of money) 13 and the Internal Revenue Service (treating Bitcoin as property for tax purposes).14
The ban will apply to OTC
derivatives and not to trading on a
regulated exchange or on a multilateral trading facility, which is designed to supplement a Belgian distribution ban that was already in force for certain products, such as
financial products with Bitcoin or other cryptocurrencies as their underlying.
I am not a fan of regulation or central banks, but if we are going to have a complex
financial system with
derivatives and central banks, they need to be
regulated by the central bank.
Critics had been raising questions about administration proposals to
regulate certain
derivatives, such as credit - default swaps, which many blame in part for the
financial crisis.
In fact, Crypto Facilities had quietly partnered with Ripple Inc. and XRP Futures was the company's second
derivative (after Bitcoin) to be
regulated under the
Financial Conduct Authority, UK's financial regulat
Financial Conduct Authority, UK's
financial regulat
financial regulatory body.
In February 2015, Schlaefer - a former Goldman Sachs trader - launched his own bitcoin
derivatives market, Crypto Facilities, authorized and
regulated by UK regulatory body, the
Financial Conduct Authority.
SBI Holdings, a Japanese
financial services holding company and US - headquartered and pending
regulated bitcoin
derivatives exchange bcause LLC, announced today the closing of a Series A equity round in which SBI Holdings has agreed to be the lead investor.
Indeed, when bitcoin was still months away from getting its first Commodity and Futures Trading Commission (CFTC)
regulated bitcoin
derivatives, Schlaefer's company had quietly partnered with Ripple and launched XRP futures, its second cryptocurrency futures product after bitcoin to be
regulated under the UK's
Financial Conduct Authority (FCA).
As a matter of fact, it wasn't until Bitcoin was very close to getting their Bitcoin
derivative regulated by CFTC (Commodity and Futures Trading Commission), that Schlaefer decided to quickly partner with Ripple in order to launch XRP futures, the second futures - related cryptocurrency after the Bitcoin futures product got
regulated by FCA (
Financial Conduct Authority) of UK.
The bulk of the law deals with the arcane world of hedge funds,
derivatives markets, and the nuts and bolts of
regulating the country's
financial institutions, big and small.