Bakkt plans to test upcoming Bitcoin futures products in July

Bakkt plans to test upcoming Bitcoin futures products in July

Translator: Play the coin family ElaineHu

Bitcoin Futures Exchange Bakkt announced on Monday that it is pushing ahead with plans to launch physical settlement of Bitcoin futures products.

Bakkt CEO Kelly Loeffler wrote in a blog post that Bakkt "closely works" with the US Commodity Futures Trading Commission (CFTC) and will test its Bitcoin futures contract product deals this summer.

The company did not announce a specific launch date. In fact, Loeffler did not make it clear that the company's proposal to keep Bitcoin on its own and liquidate through its parent company's Intercontinental Exchange (ICE) clearing system has been approved.

Instead, Bakkt will self-certify its bitcoin futures products through ICE, which means the CFTC will have to evaluate whether these proposals violate any laws or regulations. If the regulator does not find any problems within the 10-day period, these products will continue to be launched.

This is different from requiring the CFTC to explicitly approve a product. In fact, the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) self-certified Bitcoin futures contracts when they first announced their contract in 2017.

However, unlike the products of the Chicago Mercantile Exchange and the Chicago Board Options Exchange, Bakkt will deliver the actual bitcoin at the expiration of the contract, rather than the equivalent of cash.

An insider who asked not to be named said in an interview with CoinDesk that the company has not yet determined the final listing date, but if the CFTC does not raise any objections, the company will be allowed to go public.

“We completed our self-censorship. In fact, we submitted two contracts to the Commodity Futures Trading Commission, which are daily settlement and daily settlement. After 10 days, if the CFTC does not raise any objections, the two products will Can be self-certified."

ICE released two documents on Monday detailing the launch and self-certification of the two new products.

Loeffler wrote in his blog: "We will work with our customers in the next few weeks to prepare for UAT testing of futures and managed products, and we expect this to start in July."

“We want to use UAT to ensure that customers have time to get involved and be able to test whether the trading and hosting models we build are satisfactory for them,” she said. She added that future details will be shared in future blogs.

New product

Despite this, Loeffler shared some new information about Bakkt's upcoming products.

First, the company will list two different futures contracts: one is a daily settled bitcoin futures contract (“This will enable customers to trade on the same day's market”), and the other is settled monthly. Futures contract. This is different from the single-date contract that the platform originally announced.

Specifically, the company's new products will be:

* Settle Bitcoin futures on a daily basis, "This will enable customers to trade on the same day of the market";

* and monthly futures contracts, which are different from the single-date contract that was originally announced by the platform.

Bakkt also invested $35 million in his own risk waterfall clearing house, Loeffler wrote, which would “bundle our own risks and interests and connect our market integrity and security interests to market participants”.

In addition, Bakkt plans to use its own qualified custodian to provide hosting services, but this still requires regulatory approval.

The person told CoinDesk that part of this effort was around Barkt's bid to obtain a trust company license from the New York Financial Services Department (NYDFS).