A Legislation on Derivative Products: The Chicago Board of Trade

Derivatives designed by Greek philosophers first appeared in ancient Greece miles for 625 BC and 550 BC (Kummer & Pauletto, 2012). Philosopher and mathematician Thales forecast that there will be a very high olive harvest in the future. Then he took advantage of this opportunity to negotiate rights with the olive oil news owner, but in the autumn he had borrowed all of the olive oil press and had no obligation to pay the deposit in cash to review or fix Kummer & Pauletto, 2012). Today, this is not an obligation to purchase the underlying asset at a predefined price and date, but can be viewed as a call option where the holder pays a premium for the right (Sundaram & Das, 2011).

Let's first take the opportunity of DCorp into context. Last year, the world's largest derivatives exchange, the Chicago Commodity Exchange, and the Chicago Transaction Committee (the biggest financial exchange never heard before by economists) signed a 3 billion contract. It was completed through a system that was centralized with revenues of $ 3.5 billion and profits of $ 1.5 billion. DCorp's goal is to build a more transparent, safer and more open exchange while distributing profits to "shareholders" who own DRP tokens.

Tomorrow, the first futures derivative contract will be listed on the Chicago Board Option Exchange (CBOE). This marks the beginning of the major exchange's bitcoin futures trading. A week later, another rival, the Chicago Commodity Exchange (CME), will have its own tradable future. These two exchanges are very large, attracting the attention of many experts and institutional investors who want to contact Bitcoin, but so far they are very nervous. In this article I will introduce five reasons I think that futures derivatives have the potential to negatively impact the price of bit coins and end the sharp rise in prices over the past few months.

In the mid-19th century, the number of farmers and merchants delivering goods to Chicago increased, and in 1848 the Chicago Commodity Exchange (now the Chicago Commodity Exchange Group) established the world's first futures exchanges. The timing is perfect. A week after CBOT was established, the Illinois and Michigan Canal opened to link the Great Lakes and the Mississippi River to handle the increase in grain transport. When Satoshi Nakamoto developed Bitcoin in 2008, he may not be aware that the total market capitalization of the encryption currency has reached 185.5 billion dollars. The massive growth of the market caused the need for risk management arising from the lack of correlation between its high volatility and other key assets. Options and futures transactions are solutions