German Stock Exchange Confirms Working On Bitcoin Futures
Although Bitcoin price is under a major correction with the growing scrutiny of regulatory agencies, it is not stopping institutional players from exploring new products surrounding the world’s largest digital currency. Deutsche Boerse, the owner of the Frankfurt Stock Exchange, is currently exploring the possibility of offering Bitcoin futures and other Bitcoin-related products to its customers.
During an industry event at London sponsored by the Association for Financial Markets, Bloomberg quoted Jeffrey Tessler - head of clients, products and core markets at Deutsche Boerse - saying “We are deep at work with it (Bitcoin).”
Kessler further added that “Before we move forward with anything like Bitcoin we want to make sure we understand the underlying transaction which isn’t the easiest thing to do. We want to understand the volatility and make sure clients are in line and make sure regulators are in line.”
The German Stock exchange will certainly not be the first to launch Bitcoin futures contract to the market as last year the CME and CBOE Group were the first ones to launch during mid-December 2017. Tessler said that the German exchange is certainly “not at the same stage” in regard to the comfort level with Bitcoin. He said that the company is first trying to understand this space and where it stands in the eyes of European regulators.
Although the launch of Bitcoin products by the German exchange is not certain at the moment, the company has been working on shifting a majority of its post-trade services on the decentralized blockchain network. The exchange is said to be working on developing a system which allows smooth transfer of securities along with commercial money, while still ensuring the cross-jurisdictional compliance with regulators.
The Deutsche Boerse ranks among the top-ten stock exchange based on the value of companies listed on it. A number of exchanges from around the globe are now working on crypto products. Just a few days back, WorldCoinIndex reported that Crypto Facilities, a crypto startup based out of United Kingdom has recently announced the launch of Ethereum futures contracts.
The required pricing data for the exchange’s Bitcoin and Ether products will be sourced by CME’s reference rate indices.
Similarly, the world’s second-largest crypto exchange Nasdaq stated that it will surely consider having its own crypto exchange provided the regulatory agencies bring some clarity in the crypto space.
While talking to CNBC, Nasdaq CEO Adena Friedman said: "Certainly Nasdaq would consider becoming a crypto exchange over time. If we do look at it and say 'it's time, people are ready for a more regulated market,' for something that provides a fair experience for investors.”