Some of the largest brokers specializing in derivatives criticized plans for the release of Bitcoin futures and options and told regulators that contracts enter the market without proper risk taking, Bloomberg reports.
The futures industry association, which includes Goldman Sachs (NYSE: GS), JPMorgan Chase (NYSE: JPM) and Citigroup (NYSE: C), described in detail its concerns in a letter to the Commodity Futures Trading Commission. According to the members of the Association, the launch of contracts should have been preceded by more discussions about margin levels, trade restrictions, stress tests and clearing.
CBOE and CME Group exchanges on 10 and 18 December for the first time in history will launch trade in futures contracts for bitcoin. This will allow institutional investors to start earning on an unstable and largely unregulated market, which some consider a bubble. The exchanges have been authorized to trade in crypto-currency derivatives, once their compliance with the law has been proved. The circulation of these instruments will be regulated by the CFTC.
"A more thorough and thoughtful process would allow for a broad public debate among market participants. The recent volatility in these markets underscored the importance of proper conservative regulation of these processes, "the Association believes.
On Thursday, the price of bitcoin exceeded $ 15,000 for the first time, since the beginning of the year it has risen in price by more than 1400%, growth in recent times was based on expectations that the launch of derivatives will spur demand. At the same time, the market is subject to sharp fluctuations, for example, on November 29, the Crypto currency crashed by almost 20% in just one and a half hours, with some exchanges suffering from failures and break-ins.
"We are still concerned about the lack of transparency and regulation of the underlying products on which these futures contracts are based, and also the ability of the exchanges to ensure that these products are not subject to manipulation, fraud and operational risk," the statement said.