Bitcoin Futures Criticized by Brokers for Overlooking Risks
- Futures Industry Association sends critical letter to CFTC
- Two major U.S. bourses will debut bitcoin contracts this month
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Some of the world’s biggest derivatives brokerages criticized plans by U.S. exchanges to offer bitcoin futures and options, saying the contracts have been rushed to market without proper consideration of the risks.
The brokerages, who laid out their concerns in an open letter via the Futures Industry Association on Wednesday, said exchanges failed to get enough feedback from market participants on margin levels, trading limits, stress tests and clearing. Highlighting bitcoin’s elevated volatility and reliance on unregulated venues for pricing, the brokerages also questioned whether exchanges had the tools to prevent market manipulation.