Brokerage Chief: Bitcoin Futures Must Be Quarantined

A well-known electronic brokerage firm is issuing dire warnings against the CME Group’s plan to launch a bitcoin futures contract next month.

But Interactive Brokers, in a comment letter dated Nov. 14, suggested a way to mitigate the risk it sees from such activity: The Commodity Futures Trading Commission (CFTC), under the auspices of J. Christopher Giancarlo, should sequester systems that handle cryptocurrency derivatives.

“This letter is to request that the Commission require that any clearing organization that wishes to clear any cryptocurrency or derivative of a cryptocurrency do so in a separate clearing system isolated from other products,” wrote Thomas Peterffy, chairman of Interactive Brokers.

The open letter, published on the firm’s website  (and reportedly included in a full-page ad in today’s Wall Street Journal), comes on the heels of CME’s announcement that it would look to offer cryptocurrency-tied derivatives products. Earlier this week, CME CEO and chairman Terry Duffy indicated that the first product could go live as early as the second week of December…

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