The NYSE owner is considering a derivative of Bitcoin

in #bitcoin6 years ago


ICE - The Intercontinental Exchange , the owner of NYSE - New York Stock Exchange - is planning to launch a trading platform for Bitcoin derivatives. Founded in 2000 with the support of the world's largest banks, ICE owns and operates 23 regulated exchanges in North America and Europe.

https://twitter.com/Beetcoin/status/993794654050152448

The parent company of the New York Stock Exchange worked on a platform that would allow large investors to buy and hold bitcoins , according to e-mails and documents consulted by the New York Times . According to his sources, the transactions would take the form of swap .

A swap transaction is a transaction in which two parties exchange sophisticated financial instruments on the basis of a cash surrender value that is not generally exchanged . The most common type of swap is the interest rate swap . Because of their complexity, these transactions are most often between companies, not through an exchange. The specificity of this contract will be that the buyer will be in possession of bitcoins at the end of the transaction. In a classic swap the property of the underlying is not transferred .

The swap contract is more complicated than an immediate exchange of dollars for bitcoins, even if the end result, here, is the property of a certain amount of bitcoins.

In addition, the trading of swap contracts will be subject to the regulation of the CFTC - Commodity Futures Trading Commission . As a result, these operations would operate under existing laws . Undoubtedly, this will reassure institutional investors still reluctant to invest heavily in little or unregulated trading.

https://twitter.com/crypto/status/993829040757837824

This news made a lot of noise and was taken up by almost all crypto media . However, it seems important to emphasize that the ECI project remains somewhat vague and will most certainly be reserved for high-flying investors . Finally, this project echoes the announcement of Goldman Sachs earlier this week that intends to launch futures .

This new impetus for institutional adoption is therefore very real, as is the question of whether this will have a positive effect on the crypto market.

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