CFTC seeks crypto exchanges' trading data |

CFTC seeks crypto exchanges’ trading data

Peter Terlato 11 June 2018 NEWS

The regulator is investigating price manipulation practices with regards to CME Group bitcoin futures.

The United States Commodity and Futures Trading Commission (CFTC) reportedly subpoenaed four cryptocurrency exchanges to provide extensive trading information to determine if price manipulation exists in the market.

Late last week, the Wall Street Journal reported that the US regulator had launched an investigation after Bitstamp, Coinbase, itBit and Kraken denied sharing trading data with CME Group, which lists and transacts bitcoin futures based on exchange data.

The CFTC was “upset” by these actions, according to sources familiar with the matter. The four exchanges initially denied CME Group access to requested trading data, labeling the inquiry as “intrusive”. However, CME was eventually allowed to access a few hours of daily trading data from a small pool of market participants.

All participating exchanges are required to share information, including cooperation with inquiries and investigations.

CME Group spokesperson on exchanges’ data sharing responsibilities

The CFTC gave CME Group permission to list and trade bitcoin futures in December of last year.

From late May, the CFTC and US Department of Justice began investigating cryptocurrency traders that may have influenced the price of bitcoin by sending copious numbers of fraudulent orders.

Long-term future pricing options has been touted as a vote of confidence for the virtual currency economy, potentially paving the way for less market volatility and further increased investment over time.

In April, Cboe Futures Exchange (CFE) petitioned the CFTC to lower the minimum buy and sell prices of its futures contracts from 10 points ($10) to 5 points ($5), just months after officially launching the products.

Bitcoin futures trading guide: what it is, how it works and where to start

In March, Cboe urged the Securities and Exchange Commission (SEC) to permit the advancement of cryptocurrency exchange-traded funds (ETFs) in the same way that commodity-related products are allowed.

More recently, CFTC commissioner Rostin Behnam offered a bullish outlook on cryptocurrencies and related technologies during a speech at the BFI Summit held this month at New York City’s United Nations Plaza.

“Virtual currencies may – will – become part of the economic practices of any country, anywhere… these currencies are not going away and they will proliferate to every economy and every part of the planet,” he said.

“Now, with the advent of virtual assets, technology may provide a solution. And, the single greatest weapon against corruption may be the cell phone. There are 6.8 billion cell phones in the world, almost one for every person on the planet. Technology could simply bypass corruption. Here is our chance to put money directly into the hands of those who need it, without bribery, rake-offs, graft, and shakedowns. Virtual currencies could transform the economic and social landscape. It could mean a massive, and equitable, shift of wealth. Technology could be transformational, without a military take-over, civil war, or political or religious creed.”

You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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