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Nasdaq Plans to Introduce Bitcoin Futures

bloomberg.com

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Re: Nasdaq Plans to Introduce Bitcoin Futures

#7

Post by colemannugent »

>... New York Stock Exchange owner Intercontinental Exchange Inc. is the only one of the four major U.S. exchange operators without public plans to offer bitcoin derivatives.

That's pretty big. A couple years ago people were very skeptical that the big players would ever start dabbling in Bitcoin.

Re: Nasdaq Plans to Introduce Bitcoin Futures

#8

Post by gabesullice »

chinathrow wrote: post #2

I don't know why you should be able to speculate on a speculation product with no real underlying other than a power conversion function.

Serious question: how do you feel about currency futures?

If you feel differently about them than you do Bitcoin futures? Why?

Re: Nasdaq Plans to Introduce Bitcoin Futures

#9

Post by ryanobjc »

chinathrow wrote: post #2

I don't know why you should be able to speculate on a speculation product with no real underlying other than a power conversion function.

Maximum snark: and that's why you aren't on the NASDAQ board?

Besides which, there's nothing underlying the US dollar either. Sure you can pay taxes, but that's about it. The rest of the economy is a shared belief, an illusion if you will.

Shocking alert: your existence is due to the permission of others.

Re: Nasdaq Plans to Introduce Bitcoin Futures

#10

Post by chollida1 »

My guess is that this is probably pretty meaningless.

There are a few things going against them.

- The CBOE and CME are both much larger futures exchanges and are going to be offering futures first

- since you can't net out futures contracts from different exchanges this means they tend to become winner take all

> One way Nasdaq seeks to differentiate itself seems to be in the amount of data it uses for pricing the digital currency contracts. VanEck Associates Corp., which recently withdrew plans for a bitcoin exchange-traded fund, will supply the data used to price the contracts, pulling figures from more than 50 sources, according to the person.

This might be interesting as one of the things that everyone is worried about is price manipulation.

If you haven't thought about how futures work with respect to margin and marking at the end of the trading day you need to know that you can be required to deposit more money into your margin account if the futures trade moves against you on any given day.

This means the marking price is very important and lost of institutional money is worried that the exchanges are easy to manipulate.

see: http://openmarkets.cmegroup.com/3785/understanding-margin-ch...

> Nasdaq’s product will reinvest proceeds from the spin-off back into the original bitcoin in a way meant to make the process more seamless for traders, the person said.

This is awesome,, right now the CBOE and CME both have punted on the question of forks saying, they'll have a best efforts to figure it out.

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