CME Financial Group is the world’s largest options exchange. The group will be investing $51 billion dollars on index trading for Bitcoin. They are looking to complete the integration of their bitcoin exchange and be open for trading by December 18th. The CEO of CME Group, Terry Duffy, is excited to share that the US Commodities and Futures Trading Commission (CFTC) has approved and allowed the institution to facilitate the trading of bitcoin. In the first few weeks of the new operation, users will only be able to trade with a margin of 35%. Tools have been added to the platform, incorporating bitcoin and the rules and regulations that must be followed in accordance with the CFTC.
CME’s new bitcoin platform will also focus on the CME CF Bitcoin Reference Rate (BRR) to track the global average price of bitcoin via other mainstream exchange platforms. The other exchanges are of course regulated within US and Europe and are in compliance with rules and regulations within the two regions. On November 14th, UK financial institution Man Group has announced that they will be investing in bitcoin upon the CME’s bitcoin new future exchange platform. Man Group is a $100 billion hedge fund and will be a great alliance for CME Group. Hedge funds that have large scale funding, basically up to $10 billion, have a high impact on investment threshold. So, if institutions like Man Group invest in bitcoin, values and liquidity of bitcoin will be positively impacted. Eventually, many financial institutions will follow Man Group’s suit and will make the value of bitcoin rise at an alarming rate.