May 14, 2019 | AtoZ Markets - The digital asset platform Bakkt has recently announced in its Medium post, that in the coming months long-waited Bakkt bitcoin futures will be listed on a federally regulated futures exchange.
Bakkt bitcoin futures to be tested in July
The bitcoin futures exchange Bakkt that owns and operates the New York Stock Exchange will begin testing Bakkt bitcoin futures in July this summer.
The announcement was delivered on Monday by the company’s chief executive Kelly Loeffler, who added, that Bakkt had “worked closely” with the U.S. Commodity Futures Trading Commission (CFTC), to develop contracts that both meet their customers’ needs and are compliant with Federal regulations.
Loeffler noted in her post, that over the next several weeks they will work closely with their clients to prepare for user acceptance testing (UAT) for Bakkt bitcoin futures and custody. According to the company’s announcement, the exchange will also collaborate with their exchange and clearing partners at ICE to ensure successful UAT.
It is worth to mention, that Bakkt CEO did not mention, the exact date when the bitcoin futures will be released.
However, Loeffler assured the users they will provide more details about Bakkt bitcoin futures in upcoming posts. The experts suggest that Bakkt, through ICE, will self-certify its bitcoin futures products.
It means, that the CFTC will have to assess whether or not the proposals violate any laws or regulations. If the regulator does not find any issues within a 10-day deadline, the products will move forward.
Bakkt to launch two bitcoin futures products
According to the company’s announcement, Bakkt plans to launch following bitcoin futures products:
- a daily settlement bitcoin future that allows customers to trade in a same-day market
- a monthly-futures contract that "will enable trading in the front month and across the forward pricing curve."
While speaking of both products regulation and technology, Bakkt's CEO noted, that price formation in the benchmark of both contracts will be supported by proven tools to detect abusive or disruptive trading practices, including wash trades.
According to the company’s announcement, Bakkt bitcoin futures contracts will be margined by ICE Clear the US, including the collection of initial margin collateral and variation margin to manage risk. Physical delivery and secure storage of bitcoin will be fulfilled by Bakkt’s qualified custodian, subject to regulatory approval. Safekeeping will be supported by insurance, cybersecurity, and comprehensive compliance, including an anti-money-laundering program and blockchain analytics.
In addition, Bakkt will place $35 million of its own funding into the clearinghouse risk waterfall, which, according to the company’s CEO “puts their own ‘skin in the game’ and aligns their interests for market integrity and safety with market participants.”
What do you think? Will long-waited Bakkt bitcoin futures be released this summer?