The Commodity Futures Trading Commission (CFTC) attracts advice that requires a strict assessment of new virtual assets derivatives – financial instruments that deduce their value from an underlying cryptocurrency, allowing investors to speculate about price movements without directly.
In one rackSays the Regulatory Agency that the Division of Market Oversight (DMO) and Division of Clearing and Risk (DCR) have decided CFTC Staff Advisory No. 18-14 (advice regarding virtual currency-derived product lists) to be immediately withdrawn.
The DMO and the DCR originally advised on 21 May 2018, to give guidelines on improved standards for derivative contracts that must be stated on a designated contract market (DCM) or SWAP execution facility (SEF), or to be deleted by a DERIVATE Organization (DCO).
At the time the DMO and the DCR said that the risks of the cryptom markets justify the investigation by the CFTC staff and registered entities.
“In Light of the Risks discussed above, Staff Highlights Certain Key Areas That Require particular Attention in the context of Listing a New Virtual Currency Derivatives Contract Pursuant To Commission 40.3. The Topics): (A) andHANHEH) and HANH andHANH andHANH andHANH andHANH andHANH andHANH) andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANH andHANCED; andHANHANS) and HANHANCED; andHANCED; andHANCED; CFTC Staff;
On March 27, the CFTC announced the withdrawal of the advice. The agency says that the guidance reflects the thinking of its staff in 2018 based on experience with crypto derivative products.
“DMO and DCR have established that the advice is no longer necessary, given additional personnel experience with virtual currency derivative product references and increasing market growth and adulthood.”
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