CME: Average Daily Volume for Bitcoin Futures Grew 41% in Q3
Average daily volumes for bitcoin futures trading saw a significant jump in the third quarter compared to the last period. Average daily volume hit 5,053 contracts in the third quarter, representing a 41 percent increase from 3,577 contracts in the second quarter. CME provided data on open interest, which represents the total number of unsettled contracts held by those trading in the market. According to CME, rising from 1,523 contracts in the first quarter to 2,873 contracts in the third quarter represents growth from the second quarter’s 2,405.
US CFTC Official Tackles Accountability in an Era of Smart Contracts
The U.S. Commodity Futures Trading Commission (CFTC)’s Brian Quintenz as addressed the question of accountability in an era of disintermediated finance and smart contracts. He proposed that when it comes enforcement actions, not only users, but the coders themselves may be held to account. Quintenz framed his discussion by noting the complications that arise when applying traditional legal paradigms to “the disintermediated world of blockchain,” emphasizing the challenges that the emerging sector poses to the CFTC’s particular role, which is intermediary-focused and centers on preserving market integrity through oversight. He focused in particular on smart contracts, which function on a blockchain and are programmed to interact according to binding, pre-specified rules. He noted that in the past, the CFTC has generally prohibited prediction markets as contrary to the public interest, only permitting them in limited circumstances when it has found that they operate on a small-scale, non-profit basis, and serve academic purposes.
Cryptocurrencies ‘May Not Qualify as Securities’
Cryptocurrency falls into a legislative gray area in many jurisdictions, which is why governments should take a particularly nuanced approach to developing regulatory frameworks for crypto trading. Carlson Tong Ka-Shing, the current chairman of the Hong Kong Securities and Futures Commission (SFC) rejected the notion of prohibiting cryptocurrency trading platforms as a viable regulatory strategy. Such moves would prove fruitless in the current world, where trading can be freely conducted without concern for national borders, he argued. Angela Kwan, the recently hired chief operating officer of Hong Kong-based cryptocurrency derivatives trading platform Bitmex, said the SFC should follow the lead of the U.S. and other leading markets with regard to international crypto regulations. She claimed that the futures products that are now being traded in the U.S., for example, illustrate how regulators can help to support the growth of the crypto industry.