United States of America: Commodity Futures Trading Commission released advisory on listing virtual currency derivatives (Staff Advisory No. 18-14)

On 21 May 2018, the Commodity Futures Trading Commission (CFTC) issued Staff Advisory No. 18-14. This provides guidance to exchanges and clearing houses on listing virtual currency derivative products under the self-certification process (Regulation 40.2) or submitting them for voluntary approval (Regulation 40.3). The advisory outlines staff expectations regarding enhanced market surveillance, coordination with the CFTC, large trader reporting thresholds, stakeholder engagement and risk management practices by derivatives clearing organisations. This guidance is intended to address the unique characteristics and risks of virtual currency markets, such as price volatility, limited transparency and the absence of established commercial applications.