October 17, 2018

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October 15, 2018

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First Bitcoin Swap Proposed

According to Reuters reports on September 12, 2014 TeraExchange, LLC, received approval from the Commodity Futures Trading Commission to begin listing an over-the-counter swap that is based on the price of a bitcoin. The CFTC approval marks the first time a US regulatory agency approved a bitcoin financial product. In March, TeraExchange announced the finalization and submission to the CFTC of its non‑deliverable forward swap agreement framework for bitcoin, which allows parties to hedge against fluctuations on the Tera Bitcoin Price Index exchange rate for bitcoin.

According to Reuters, to obtain CFTC approval, TeraExchange was required to create an Index that was sufficiently resistant to manipulation. The CFTC previously approved TeraExchange for temporary registration as a swap execution facility in late 2013. 

Click here to read the Reuters report.

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About this Author

Claudia Callaway, Litigation Lawyer, Katten Muchin
Partner

Claudia Callaway is chair of Katten’s Consumer Finance Litigation practice and co-chair of the Class Action and Multidistrict Litigation practice. She focuses her practice on the defense of state and federal class actions regarding consumer protection and consumer finance laws and representation of clients before the Consumer Financial Protection Board (CFPB), the Federal Trade Commission (FTC) and state banking agencies.

Claudia represents consumer lenders, third-party debt collectors and other consumer  financial services clients in class action suits and...

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