Deutsche Boerse AG, a German stock exchange operator, is assessing whether to provide cryptocurrency products. This was revealed on Wednesday in an industry event by the company’s head of clients, products and core markets, Jeffrey Tessler. This is mainly due to the fact that the company reflects the advantages of crypto derivatives as well as potential issues.
Deutsche Boerse AG only watched by the sidelines as its US based rivals Cboe Global Markets Inc. and CME Group Inc. commenced Bitcoin futures to great fanfare. Apparently, there was no major European exchange that had the ability to start Bitcoin futures. This is due to the careful approach of regulating the budding market by the authorities.
In many ways, Deutsche Boerse AG has to think about the futures, with which private investors as well as institutional investors are able to shield present reserves in Bitcoin or set for the declining values of the crypto. These are key considerations which the company is looking at before making the significant move.
According to Tessler, there is need for the company to comprehend the fundamental transactions before taking any step with regards to Bitcoin. Speaking in an event held in London by the Association of Financial Markets in Europe, Tessler was of the view that this seemed to be the easiest thing to do.
Additionally, Tessler believes that they are deep at work with it, recognizing that the company is not at the same level with CME. He asserts that understanding the volatility of the cryptocurrency is vital, before taking any step to move forward with Bitcoin. This is because both clients and regulators need to be in agreement on the way forward regarding the crypto.
The very fact that the digital currency technology is still evolving, coupled with the fragility of Bitcoin’s spot market as well as the lack of regulation and price volatility is a major concern to the company. Being a fully regulated exchange, Deutsche Boerse AG needs to address all these factors before launching its products.
By and large, Deutsche Boerse AG is closely analyzing all the ideas in light of the fact that regulation of cryptocurrencies is still lacking. Nevertheless, the company takes cryptocurrencies, ICOs as well as blockchain into considerations. However, should they go ahead with the idea, it would make Germany the first European country to provide futures for the cryptocurrency.