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.