CME Group, the foreign exchange company, has revealed details of its new bitcoin options contracts. As per the Chicago-based global markets firm, an individual contract will be formed based on one of its bitcoin futures.
The exchange initially spoke of its aim to introduce options contracts in September. It is planning for the date of the launch at the beginning of 2020. Also, awaiting acceptance by the regulatory authority.
The firm’s bitcoin options will be related to options contracts provided by it.
CME Group revealed details after Bakkt, its competitor, announced the beginning offering of a similar product in December.
According to a report, Tim McCourt, CME Group’s global chief of equity index and alternative investments, said user opinion had stimulated the upcoming product.
“Where we’re at in the process, we’ve done extensive validation with members and after this announcement, we’ll continue to engage with market participants who have input on how the product should be designed and …. We’ll continue to make sure it meets their needs.”
“I think the response has been strong, we’re excited about bringing to market. It’s not too dissimilar to the futures when we are engaging with customers … The fact that options will be listed on a regulated venue and will be centrally cleared continue to resonate with the marketplace.”