The CFTC's Division of Market Oversight (DMO) and Division of Clearing and Risk (DCR) issued a joint staff advisory giving exchanges and clearinghouses registered with the CFTC guidance for listing virtual currency derivative products. The advisory provides guidance on certain enhancements when listing a derivative contract based on virtual currency and clarifies the CFTC staffs' priorities and expectations in its review of new virtual currency derivatives to be listed on a designated contract market or swap execution facility, or to be cleared by a derivatives clearing organization. It highlights certain areas that require particular attention in the context of listing a new virtual currency derivatives contract, including:
- Enhanced market surveillance;
- Close coordination with CFTC staff;
- Large trader reporting;
- Outreach to member and market participants; and
- Derivatives Clearing Organization risk management and governance.
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