News Regulation

The CFTC has issued an advisory statement for listing virtual currency derivative products

The USA Commodity Futures Trading Commission (CFTC) has issued an advisory statement for listing virtual currency derivative products, according to a CFTC press release published on May 21. The aim of the advisory statement is providing clarity for exchanges and clearing houses.

The staff advisory, which was jointly issued by the CFTC’s Division of Market Oversight (DMO) and Division of Clearing and Risk (DCR), focuses on the specific areas involved in listing virtual currency derivatives on a designated contract market or swap execution facility. It covers the necessity for more market surveillance, coordination with CFTC staff, large trader reporting, and DCO (Derivatives Clearing Organization) risk management and governance.

“CFTC staff will seek to provide additional guidance to help market participants keep pace with innovation while complying with CFTC regulations.” – Amir Zaidi, the director of the DMO, said in the press release.

Last week, the SEC launched a fake Initial Coin Offering (ICO) website to show investors the warning signs for typical scams and fraud. The SEC and CFTC also held a joint hearing on cryptocurrency in early February. The hearing concluded that the two organizations need to work together on regulating the cryptocurrency market.