Bitcoin Futures Exchange Bakkt Collaborates With ICE Futures US and ICE Clear US To Develop Bitcoin Futures Contracts

Bakkt is a bitcoin futures exchange who has joined hands with ICE Futures US and ICE Clear US in order to develop bitcoin futures contracts. The exchange is about to launch the contracts soon. The shape of the contracts is based upon their conversations with stakeholders.

User acceptance testing (UAT) for futures and custody will be carried out in collaboration with customers. This collaboration will start probably in July. UAT can be used for ensuring customers time in boarding. A model called trading and custody model can be tested.

Unique trading, security and risk management features will be provided through the contracts.

  1. The exchange will list two different futures contracts viz., a daily settlement bitcoin future and a monthly bitcoin futures contract
  2. Proven tools will be used for supporting price formation. Abusive or disruptive trading practices can be detected.
  3. ICE Clear US will margin the futures contracts
  4. The exchange will invest $35 million. The amounts will be invested in the clearinghouse risk waterfall
  5. Qualified custodian of the exchange will fulfill a service called integrated custody service. The service fulfillment will be carried out for Bitcoin delivery physically and Bitcoin storage securely. All actions will be performed under regulatory approval. Insurance, cybersecurity, and comprehensive compliance [money-laundering program and blockchain analytics] will support safekeeping.

Bakkt has also collaborated with a government agency called Commodity Futures Trading Commission (CFTC) for the development of the contracts. The main purpose of this collaboration is to fulfill needs of customers. The needs can be for trading, transparency, and market certainty. It collaborates with a government department called New York State Department of Financial Services. Becoming a trusted company is a purpose of this collaboration. Working as a qualified custodian for digital assets is also their purpose.

Marc D’Annunzio has been hired as the General Counsel of the bitcoin futures exchange Bakkt. He has a deep understanding in securities law, M&A, and international regulatory matters in the payments industry. Legal, regulatory, compliance and governance matters management of the exchange will be headed by him, Medium reported.

One Twitter Post of Bakkt:

Customers will be helped in buying, selling, storing and spending digital assets through the bitcoin futures exchange Bakkt. Bringing trust, efficiency, and commerce to digital assets is a purpose behind the formation of the exchange. Whereas connecting the existing market and merchant infrastructure with blockchain technology is a purpose behind the development of open technology, according to the official LinkedIn account of Bakkt.

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