Chief Executive officer, CBOE responded to criticism that the recent launch of bitcoin futures were hasty.
Speaking to Financial News, Edward Tilly, said that the objections similar to those expressed by the trade Association futures in an open letter last week, have no relation to reality and do not reflect the reality of the approval process of new products. As an institution, derived from selling commodities CBOE is controlled by the Commission on commodity futures trading (CFTC),
I think that this letter and populist statements to our regulator, the CFTC, have nothing to do with reality. To say that a new product was launched without adequate participation of the CFTC – is simply irresponsible. I respect all the concerns that are causing this new market, but when they are formulated in such a way, as did the Association is too much.
In this letter, released last week, the Executive Director of FIA (Association for futures) Walt Lokken said that the members of the Association are concerned about the price volatility of cryptocurrencies, and also doubt that the procedure of launch of a new futures contract have been duly carried out.
Needed public discussion of whether there should be a separate guarantee Fund for this product or exchange just have to add additional capital to the guarantee Fund.
Such objections were previously raised by the founder of Interactive Brokers, Thomas Peterfi, who in his statement to the Wall Street Journal claimed that the bitcoin derivatives must be based on the broader market.
Tilly explained that the options clearing Corporation (OCC), a clearing house, focused on derivatives, working on the clearing of the contracts for CBOE.
Again, I rely on the experts and rely on their decision.