bitcoin futures began trading on the cme. futures price for the cme is fractionally lower ultimately this was a big liquidity event. we haven't seen a meaningful decline in what could be framed as a positive reaction 19330, the price of bitcoin. joining me is brian calesium brian, we spoke about this last week, of course, after the cbo features began trading was this a bigger potential liquidity event and bigger potential threat to bitcoin? therefore we're not seeing significant declines >> i don't know if it was a bigger threat. certainly a bigger event cme trades a lot more futures and there's a lot more players in that area the contract is a bigger contract it's five bitcoins per contract versus one on the cboe one could presume it's much more of an institutional customer that could be coming in here threats potentially. there are a lot of people saying they want to short this because they think it's the biggest bubble out there it seems like perhaps that's a lot of talk and there was a lot of action. but i would call it, t

a dollar per contract on the cboe, five on the cme, but remember, cboe is just one bitcoin while the is five. margin rates are kind of similar. cboe at 44%, cme at 47%. hey, remember, nasdaq will be jumping in in the first half of 2018, we'll be covering that as well i anticipate the volumes on cme will be higher than cboe simply because cme is a much larger futures platform than cboe interactive brokers, one of the few online brokers allowing the trading of bitcoin futures, says they will now allow investors to short bitcoin futures on its trading platform up until now ceo thomas petterffy has not allowed shorting but he now says he will allow short sales because of the big premium the futures contract has over the cash market, and he's right about that. it's been about 5%, that's an unusually large spread but he'll charge a hefty margin spread, the fee $40,000 for a short sale now, he may have moved the markets. the spread between the futures and the cash for bitcoin dropped to about $300 this afternoon that's a fraction of what it had been earlier so things may already be moving on

just this morning bitcoin futures were approved for both the cme and the cboe, the cme saying they would launch on december 18th. bitcoin, despite some shakiness lately, is up nearly 1,000%, yeah, 1,000% this year how can you cash in on the action mike is at the big screen breaking it down >> very good news for the exchanges when you start listing products everybody is excited about. it's safe to say bitcoin is attracting a great deal of attention. why would you want to sell a put? one reason is because you want to buy the stock at a lower price than where it is currently trading. when you sell a put, you're selling somebody else the right to sell the stock at the strike price. the other reason is when options are expensive. often when stocks go higher, options premiums go down cme, that isn't the case also because we're looking at higher probability of profit the cme, obviously the stock has had quite a run here where it really broke out from, in my perspective, is right here, around the 140 level let's pay attention to that. now let's take a look at the price of options what we see is

the cme on sunday. just moments ago, td ameritrade announced they will allow bitcoin futures on monday. the future is kelly will tell y everything you need to know. we've got something bigger in store for next week. meantime track how much money you're making by the minute with the bitcoin bug via coinbase right now on your screen >>> the other big story this week, disney closing its deal to buy parts of fox michael burns is here to weigh in on the media mayhem could his company be the next target >>> first, what all the wall street is waiting for, tax cuts. we're moments away from the release of the tax bill. let's check in with eamon javers in d.c. for the latest >> reporter: hi, melissa the big reveal coming up at 5:30, people waiting to see whether particular measures got in or out of the final bill, released at 5:30 eastern time. there were major developments today including two key senators who came off the fence and said they're going to vote yes. that's marco rubio who apparently got much of what

bitcoin futures made their debut on the cme. shery: breaking news out of south africa. we are hearing that the votes have been counting -- counted and -- has been elected president of south africa's anc. he has been elected president of the anc. president ofuty the anc. he beat the chairwoman of the african union commission and also the former wife of the former president. we know that he got 2440 votes. we are now seeing the rand react. we saw the rand gaining ground on up to fit -- optimism that he would be elected, gaining 3.8% at the moment. bonds are lower as well. orot of buying on optimism the hope that it would be a change and be better for the south african economy. julie hyman is with us. we are halfway through the trading day. wanted to mention what is going on with the rand. some interesting reaction surrounding the election. you see the decline in the dollar versus the rand. ago, the other candidate in the election had asked for a recount but it looks like that happened or that was not judged to be necessary. if we have seen a recount or some kind of questio

than it has been more calm the initial debut on cboe. cmetacts are trading more tightly to the actual bitcoin price and we are looking at a spread above 2% between bitcoin price and bitcoin futures. we saw spreads of much wider when cboe futures started trading early last week. the volumes look a little more study than the rush into the futures we first saw the futures last week. anna: in the context, how important is this? is this another step into the realm of accessibility and maturity for this currency, commodity, whatever you want to call it? eric: yeah, i think this whole year has been a theme of really cryptocurrencies led by bitcoin becoming part of the mainstream conversation. one currency analyst describes the entry, the cme bitcoin futures this week as the cme -- as the bitcoin futures entering the major leagues, so i think, the fact that the cme contracts are five times larger than the other contracts, it is coming from four exchanges instead of one, that makes for a larger, better sense of what futures are doing for bitcoin. and

the first inning. vonnie: what about exchanges? we have seen cbo, cme. e see more widen the contracts they are offering? spencer: absolutely. whether you are the exchange operators or you are so many that wants to speculate on the asset itself. people are just dipping their toes in the water. 2018 will see nasdaq roll out futures contracts. that are supporting derivatives today will continue rolling out more and better contracts -- products. mark: the upward trajectory of bitcoin has not ended. spencer: why is that? that is a very good quest -- has not ended. why is that? spencer: that is a very good question. as price rises, we think about that supply/demand imbalance. the supply of people willing to sell a particular stock increases in me well, demand tends to fall off as financial ratios make a price-to-earnings or enterprise value tens to get higher. it is kind of the opposite case with bitcoin. is locked down with long-term holders that have severe conviction with this asset. they have been in multiyear bear markets and volatile markets. if they did

we're seeing the institutions given the fact that the cme group, the world's largest cme group has launched bitcoin futures. a couple of differences that we had launched last week and the cme. the ones that launched last night are much larger in size. each contract that trades on the cme is worth 5 bitcoins as to the cboe which is a one-to-one margin if you go on to cnbc.com and check on the tool bar, you can search for bitcoin futures it will show you both the cboe and the cme mark right now 657 futures have traded on the cme. a little over 3,000 contracts. that puts the total contract of bitcoin trading so far on the cme around the 63, $64 million mark that's about the same amount of dollars that we saw last week when i was onyewu guys for the first day of cboe trading. you get the feeling like a lot of these institutions are just dipping their tows perspective we know this isn't apples to appleless, futures to futures. the oil market, which is one of the more liquid markets out there for futures trades around $145 billion with a b on a daily basis versus around $63 billion with a b for g

the cme is going to be priced before. -- they're are also going to have this volatility ball which will be for investors worrying how wild the price swings in bitcoin have been. haidi: another step towards more mainstream legitimacy. our marketsr that, reporter in hong kong. let's get you caught up with the first word news with ramy. china is looking for stronger financial links with the u.k. after it finalizes brexit. trade talks in beijing ended with more than $33 billion worth of support for u.k. businesses taking part in china's belt and road initiative. other improvements included speeding up the shanghai stock each countryh lets trade shares on each other's exchange. malcolm turnbull has greedy -- regain his majority. joe and a sender -- john alexander one a vote. if that were replicated in a general election, his coalition would be defeated. a poll in december for the government trailing the labour party by six points. the presidential candidate of the african congress has been delayed for a second time, with almos

bitcoin future, started trading on the cme. the cryptocurrency continues.e are live on the trading floor in chicago next. this is bloomberg. ♪ ♪ mark: live from bloomberg's new european headquarters in the city of london, i'm mark barton. vonnie: and i'm vonnie quinn. this is "bloomberg markets." cmeoin began trading on the . the trend higher is unaffected, even though there was a drop at the opening. joining us to talk is scott bauer of trading advantage. how much interest was there in the beginning of trading of these new contracts? we did see a major drop at the open. scott: it is not bad for the first day here. some of the firms that will participate are feeling their way around the market. right now, there is probably around 800 contracts or so that have traded. remember, the cme contract is worth five bitcoins. it is really five times the notional value. that is a significant amount. the biggest thing we have seen so far is trading has gone off without a hitch. things are going well here. find coke we did see a drop in the price and a -- vonnie: we di

our third story, the cme joins --a in joining in bitcoin join shiva in trading bitcoin. one of the interesting debates over the weekend was does this which appears inevitable, does it lead to growth or just inflated stock prices? i have yet to hear from anyone who says it will lead to growth, with the exception of economists associated with the administration. >> of shows the s&p 500 rising even though the dollar weakens. does the market view it as not generating -- >> the theory is if it were going to raise growth, it would be dollar positive. it is easy to make an argument why this is good for stocks. can point to why this will cause sustainable pick up in investment. people talk about the sugar high , but nothing to increase the productive capacity of the country. will this cause corporate america to invest? how will we know what the reaction will be? >> we will not know for a while. this will change the flow of money. it is the first major tax reform we have had in three decades. the question is whether businesses hold onto the money. the hope is they will let go of i

the futures on the cme after the cboe launch the last week.one point they rose above 20,000 looks like they are below that this morning it's not just the bitcoin futures but there are a lot of bitcoin players that have done well ameri trade launching tradering for the retail set and overstock up 300% this year. >> thanks, bertha on the floor for us let's head to the bond pits and join rick santelli >> good morning, david lots of the issues affecting the fixed income sovereign markets specifically treasuries remain constant with drift on the long end as you see on a two-day of 2-years, usurp the 184 with a 185.5, comp back to 2008, that remains somewhat steady. if you look 'december 1 stt, it has been a remarkable run, six basis points since september 1st. if we look at the farthest end, 30-year bond hovering 2.70, 2.72.7 2.71 and if you look at the bund yields, very similar, even though this of course a 10-year bund also hovering close to the lowest yield since september if we look at the dollar index to switch gears to foreign exchange the do

brian: the great thing about the cme is it is institutionalizing the asset class.ve real futures. i think the market will get more organized. we have never had a digital currency in the history of the world. we are just figuring it out. we will determine what it is. i am not sure it is a currency because it is very slow and can be wonky. it is not a very good store of value. it goes up and down 30% in a week. onare at the price it was december 6. in context, a huge selloff, but this is going to be a pretty regular thing until we get a bigger institutional market. vonnie: let's turn to oil. what are you looking for out of wti for the first quarter of taking? brian: it has been a whimpy market this year. are 53.ge we going back to 2015, the average is 52. it has been a quiet market. that speaks to the overabundance of supply. the question is, will there be demand? u.s. tax cuts might help. saudi arabia, they have a big change in leadership, a war in , and that is not over yet maybe they are sniffing around in the u.s. shale fields. i think saudi arabia as the head of

the crypto currency now being traded and the world's largest futures exchange here in chicago at the cme. i have - - the contributor. this is big for big - - but coin because it lends credibility to it. >> this is what they use to make jokes about. how can you base and trust currency that is based on the full credit of the internet now the egg is credit has put this weight behind its technology which is bitcoin it's only the beginning. >> we have expedia , overstock whatever - - what other ones, dish and microsoft they accept bit coin now like it's money. >> one of the criticism in the currency in the morning is how you can spend this thing and now the cme is trading it more and more companies will accept it. that means it's a real currency.>> these are futures we are trading up on the board now. this could lend some additional stability to the market as it has a run up, less than 10 years ago i am looking at the numbers, less than a penny. today it's trading for about $20,000. >> the run up means it has the biggest move up of any commodity in history in fact this is eclipse is the vicer

bitcoin futures start trading on the cme. could be the latest version of the no doc, no income loan bubble you just saw in the last decade. and liberals pushing for a system here in the united states. but it's one that brought venezuela to collapse. we've got all of that coming up next cannot live without it. so if you can't live without it... why aren't you using this guy? it makes your wifi awesomely fast. no... still nope. now we're talking! it gets you wifi here, here, and here. it even lets you take a time out. no! no! yes! yes, indeed. amazing speed, coverage and control. all with an xfi gateway. find your awesome, and change the way you wifi. liz: bitcoin now trading on the world's largest futures exchange. the cme. bitcoin up more than 17,000% this year to above 19,000 bucks. it's now called this generation's version of no doc mortgages and liar loans. let's take it up with the founding member of the capitalist pig. wall street journal wealth adviser reporter veronica. bitcoin trading below 1,000 at the beginning of th

at the cme headquarters in chicago, 11:00 a.m. here on wall street, and "squawk alley" is live >>> good morning, welcome to "squawk alley. with me here at post 9, kayla tausche back again >> all three major averages hitting record highs the dow at one point within 150 points of 25,000 it's backed away from that a bit, but we're still keeping an eye on it. for more, philip swagle and jim paulson, chief investment strategist welcome to both of you jim, we keep hearing simultaneously that the market is rising on tax reform optimism and also that tax reform is priced in. which is it? >> well, it's hard to argue that it's priced in when it keeps going up every day that's for sure. i don't know what has not been vetted by the market as far as this tax policy is concerned the news has been out there for some time. people got a very good idea exactly what it's going to be and already have adjusted their earnings estimates and so forth, so i sort of lean in the camp, too, that even though they'll probably pass it this week, most of that is

the cme following up by announcing its bitcoin futures contracts will be available on december 18th.k, what do you make of the impending launch >> a watershed event in my view. i'm bullish on bitcoin, i'm somewhat biased. an investor asked me, what keeps you up at night? that the u.s. would ban bitcoin at some point. with the nasdaq getting in the game, that takes that concern off the table. you'll see an awful lot of institutional money flowing into this sector. a watershed event. >> interesting what keeps me up at night is insomnia now you can short 'em, baby, not just a one-way street, guy, like the chinese stock market >> chicago mercantile exchange has made an all-time high today despite this huge selloff in the market, that's extraordinarily interesting. valuation is stretched but more things are trading and their numbers are going higher, volumes are increasing increased volatility is good for these changes. chicago mercantile exchange is a buy. >> it's no toys in the attic final trade. >> hail burton >> twitter, a seller >> ibm >> i think "fast money" is too fast >> you're se

the cme futures are the major leaks. -- major leagues.t is the key risk in terms of cme futures differing from the cboe ones? is that a story of consolidation, or price discovery? looking at the way it is structured, cme futures is based on four exchanges, as opposed to one first cboe, and also you have similar kinds of structures for limits in terms of price halts and price swings limits, so that is what people are looking at most closely. when we had the debut, there was a real rush into bitcoin futures, then a pullback on must as quickly. what we are seeing is a steady pace of trades in the new futures, so everything looks calm and collected. we are not seeing the volatility we saw when the first futures contract started with the cboe. yousef: very briefly, the one event i should be watching out for next in this evolving cryptocurrencies story? >> what we are seeing with bitcoin is increasing interest from government regulators and central banks around the world. you have the finance minister from france and he would be lookht up with

crypto stocks taking it on the chin, square, overstock, the cme, even riot blockchain getting crushed after their big runs bitcoin are used to this volatility but this is the first time many new bitcoin believers are feeling the crunch since piling in. how long does this last, will these newbie investors be scared off for good, dan? >> this is not a bad thing, especially if this whole crypto thing will have some legs here from october to late november, bitcoin doubled, it went from 5 to 10,000 then doubled again we had a 30% pullback, it felt like a panic it was in all the alt coins, a lot of really bad headlines. our twitter feeds were taken over by crypto in the last 48 hours. it's important to remember this is one asset class, it did not go into other asset classes. i know a lot of people who have been on this train, i have not, i'm just a tourist, i'm gambling like most of you on my coinbase iphone people are waiting for the pullback we might have put in a short term bottom. >> if it were a stock, that's a great question >> and the question is, and it's not, so how do you interpre

thanks for joining from the cme today. rk: still ahead, washington politics has again been thrust into the spotlight. the former national security adviser michael flynn is scheduled to plead guilty to making false statements to the fbi. we are live in washington. some big moments coming up in the next few minutes. theie: we are outside courthouse where michael flynn will be appearing, essentially to give a guilty verdict. at this point, we're not sure what leverage that will give to the special counsel. but we are going to keep an eye on that. i am sure that will come out. stay tuned. ♪ vonnie: breaking news. we are awaiting michael flynn, the former national security adviser who resigned after 24 days in his job. we know he is expected to plead guilty to lying to the fbi. this is the first charge in special counsel robert mueller's investigation. fact, we are- in watching michael flynn inter-the washington, d.c. courthouse. ,t is a district courthouse federal court. we will keep you apprised of what actually happens, as so

futures for the crypto currency to trade on the cme today. tarted trading on the cboe last week and fell off a cliff. what does this mean? how would this be different? >> i think authority different. a lot more successful. we've had over 636 contracts that features trading and that's pretty amazing considering a lot of the brokerage firms right now are taking away in the attitude. ditto on third trading futures. it's very successful. it is also seen some trades in the futures which is a very good sign that this contract isn't going anywhere anytime soon that we were over 20,000 good looking at it now about 19,360. relatively inactive right now but i would have to say they're happy with the way it started so far. train to what is happening for the underline in the price of bitcoin? >> .you can short it is. that was the biggest concern. you never really got an idea of what the value was. all you could do is buy, buy, buy. now there's a tear big players will get in the end start to sell this thing. that is a possibility. that is the market is one

cme is a bigger player in futures. thegot off to a faster start with more efficient pricing. it is a huge win, because cme's contracts are five times more valuable. we caught up with our bloomberg editor at large. >> it is very important that these financial projects and hedging mechanisms are introduced for institutional investors. for a lot of these investors, it is the first time they have been able to go long or short on bitcoin. emily: we have eight chart here. -- we have a chart here showing how futures got off at the cme. what is your take on the significant of this week versus last week? exchange where a lot of big money changes. a lot of groups are unable to trade this for legal reasons. this is the only product they can legally get involved with. they can actually, a lot more money can be attracted to these cyber currencies. last twow does the weeks change what you're doing day-to-day your hedge fund? we are long only, but there has been a huge amount of media interest in this area. there has been a huge number o

futures are allowed to trade on the cme and cboe. dow blue 24 k for the first time -- blew 24 k for the first time. more on that, next. this is bloomberg. ♪ ♪ senate republicans are scrambling to salvage their tax reform bill and they have a trillion dollar deficit problem. suspended until 11:00 today after leaders were unable ,o sway three holdout senators all objected to measures that would increase the budget deficit. joining us from washington is bloomberg's kevin cirilli. i feel like this is changing in real-time. the us the latest on where bill is. kevin: headlines crossing the terminal as we speak. the republican leaders do have the votes now for this tax bill. late last night, the drama unfolding on the senate floor with mitch mcconnell speaking to the senate proletarian saying the proposal put forth by rob corker regarding the so-called trigger point is not going to work. republicans are divided on that. said the trigger point is needed and tea party folks and others saying the way to raise revenue is not the another tax inc

we were involved in the cme and cboe launch. erall activity on the futures market, it's been light. to give you an idea of how light it's been, right, there's an exchange calmed coinbase traded around $500 million today notionally whereas the cme contract traded around $100 million. we're active in both markets but obviously the spot or cash market just far surpasses anything that's happening in the futures market >> and i wuonder, bobby, what might change that situation? is there not enough of a kind of natural institutional ownership of the underlying to make the hedging worthwhile or is it the sfakt that t fact that the ownership of actual bitcoin is so concentrated among the early adopter -- i'm wuondering about the components that make a good two-started market. >> the first part you made in terms of just hedging, ritght. cboe, you saw the basis trade around 8%. that was a spread between futures and spot when cme launched, it was right around 4.5%. from our perspective, it looked like market participants were much better pre

in the same trading house, even took out this full page ad in "the wall street journal" blasting the cme listing bitcoin futures, saying it could bring down the entire economy but they will be the first to offer online trading come next week let's with just thomas pepetrffy. great to have you back >> thank you >> you see bitcoin possibly going to what, zero dollars, and yet you are allowing customers to trade the futures come monday >> absolutely. >> why >> so our clients have asked us to enable them to trade come monday morning and we will too thdo that. we will offer bitcoin futures starting this monday however, we will not allow shorting we will allow trading from the long side only and we'll charge 50% margin. >> okay. so you cannot short -- why only allow being positioned long in the futures as opposed to being able to short bitcoin effectively? >> because assume bitcoin, say, at $16,000 right now, you charge 50% margin, the next day the market goes to over $24,000, which is the 50% it gets logged in, because there is a limit, it cannot go any further. we try to cool our customers'

. >>> we have been loving this all continues today with the cme trio there. here's a preview of them live in alexandria. ♪ ♪ ♪ with twice the crispy caramelized peppered bacon. dunkin' sweet black pepper bacon sandwich is back. experience a breakfast sandwich made for bacon lovers. >>> it's finally friday. we're watching your travel weather very closely. we had snow up into new england. locally we're dry. the clouds on the increase today ahead of some rain. i'll show you the timing of that rain. what to expect for your weekend and of course, what your christmas day is going to look like straight ahead. good morning, dave. >> watching a crash, sheena on the inner loop of the beltway. i believe chopper 4 is flying above it with inner loop delays with the dulles toll road for the american legion bridge. the wreck just about to clear from the right lane. here's a view of the traffic jam. it's still a slow go. for the that's the latest. back to you. >>> this morning, we have a very special treat. >> a super talented trio. cme they're cal

the cme on sunday. td ameritrade announced they will allow bitcoin futures on monday. the future is kelly will tell y everyt

futures launching, nasdaq will be coming in the first half of 2017. cmeaunching the bitcoin futures contracts that will be on sunday night. we'll have more bitcoin futures coming fairly soon i think the important thing is contract is fairly small for the -- cme is a much bigger futures exchange i anticipate more volume and more open interest all of this will serve more people in, more contracts out there and possibly, possibly more stability one thing i want to mention on monday, that's going to be happening, one big initial coin offering we've had discussions about the icos but icos are simply put, ways of rarzing funds for a crypto currency invention. there will be one on monday. it's getting a lot of attention because it's going to be a block chain based in exchange for icos and traditional securities this is one of the holy grails out there. in the future, they hope all trading will be done on block chain and these crypto exchanges will take share of products away from the traditional exchanges and trade stocks and bonds we'll see. that's very much an

the biggest danger is between now and when the cme will start trading. we will see enormous amount of glitches if they do happen the market. we do not anticipate that will happen because i think liquidity -- there are over 3000 contracts traded. they do not represent any for you. we do think the process will be a lot more smoother by the time the cme is coming. phenomena ofire arbitrage between the different exchanges with cme ring in their own product, i think that will narrow it down. arbitrage opportunity come which does exist, and by the way i do attend a number of major summits when it comes to crypto and this is one of the biggest things -- how they can make money based on arbitrage of different products with different action just. exchanges. vonnie: there was a $500 million crypto fun. if he or someone else sees massive trades in this, what is to stop him calling off people that he thinks have made these massive trades and deciding to manipulate the market somehow? i'm not saying intentionally or illegally. i'm just saying it's not regulated, so wh

kathleen: the cme is a much bigger stage. if we look at the cbd launch as a curtain raise, a practice for the big time. stock market looking pretty good on friday. we will likely see followthrough in the asian markets with the dow jones industrial average gaining 24 points to 2675. the dow jones industrial average gaining .6%, nasdaq up about 6936.0 points to haidi: if you look at the set up in asia, we should be getting pretty positive. aussie stocks getting ready to rumble. take a look at training in new zealand ahead of a pretty data heavy week. a downside of about .3% when it comes to nzx 50 shares. .69.iwi dollar at about are lookingustralia a whole lot more positive, the s&p ready to get into the last week of trading before christmas outside of 29 points or about .5%. the aussie dollar, 7647. potentially u.s. tax or form getting past, certainly seeing some resilience. the turnbull government is holding on to its slim majority and looking to use the results of the election to kickstart into the new year after what has bee

of the volatile cryptocurrency. cmeyer in futures with many players expecting it to make a bigger splash. the exchange got off to a faster start with more efficient pricing. its most active contract changed hands 21 times versus 570 during cboe's debut. it is a huge win, because cme's contracts are five times more valuable. they are tied at five bitcoin versus only one with cboe's futures. we caught up with our bloomberg editor-at-large cory johnson looking at ethereum and union square venture. olaf: so it is very, very important that these financial projects and hedging mechanisms are introduced for institutional investors. for a lot of these institutional investors, it is the first time they have been able to go long or short on bitcoin. emily: so, we have a chart here, showing how futures got off at the cme, at the cboe as well. cory, what is your take on the significance of this week versus last week? cory: this is a product and exchange where a lot of big money trades. a lot of groups are unable to trade this for l

the bitcoin futures world. what you are seeing and what cme etc. you are having almost a commercial and regulatory normalization of bitcoin. accompanying that, you are seeing an regulatory action. in the past week, we have seen -- week or two, we have seen the sec commissioner making statements. we have seen sec enforcement including several substantial ones that today, we saw the release of the cftc has proposedr comment regulations regarding the definition of advanced delivery, psy think what you are seeing -- i think what we see is more of an emphasis on regulatory compliance. i do not actually think -- that is certainly not a good thing for the ico scammers we have seen in the last year. certainly not a good thing for ico's as a mechanism for raising a significant amount of cryptocurrency without having built anything. joe: let's talk about regulations and responses, specifically to ico's. it seems like regulators are starting to spring into gear, as you hinted. early on, they busted a few tiny ones that looked like almost anyone would be able

the correlation if you look at bitcoin over the cme, there is a strong correlation as we ramp up intounch wech, we'll shu this the longer term, it is solid and we have broken into a $145 break. we are through that. it looks solid what i would say here is look at other launching, they're launching a smaller profit i think this is more of a retail oriented product because bitcoin, there will be other retail orient customers. the chart you are looking is performing relative to the cmes. >> okay, todd gordon and michael bapis. thank you both for more information, go to tradingnation. cnbc.com >>. >>> contessa brewer is joining us now >> the scheme is simple. it goes like that. >> as shoplifter goes in and sees an item at the store. the shoplifters return theitem without a receipt to the same chain but different locations. they receive for the full value of the items and sales tax that was never paid >> every single one of them told us it is as common scheme to find a cripplinghabit >> our experience is that they're going to commit tease crimes >> reporter: we ride along with the lieutenan

the important thing, take a look at the cme contract for the whole week we've had huge volume today. almost 2,000 contracts that's 700, 800 would be an average. we had four, five times normal volume this is the same with the contract, as well. we had four, five times normal volume there, as well. so, what do you make of all this what we have is hitting price limits and extremely high volume this tells me that you're seeing professionals come in and sell their positions and they may be covering, putting taking off their short positions at this point. remember something, bitcoin is primarily driven by the cash market that is very, very important what we have here this week. we have talked about huge price swings 20,000 to 12,000 we see competing coins coming out and going crazy. we see talk of bitcoin etfs. and the litecoin founder saying he was liquidating his holdings. let's put up bitcoin and the key point here is this is not driven by the futures market, it is driven by the cash market, even though that is the instrument we choose to focus on because that is a tradeable instrument.

bitcoin has begun trading on the cme, that is the world's largest derivatives exchange operator, theeen as a major validation of the online currency which has been named as a fraud and in a bubble by some of its critics. alicia centre rally is with us now, we know that this is the second move ina we know that this is the second move in a week, disease mean it is gaining some legitimacy? investment has been cautious by investors, especially given this is a brand—new investment class. it is a premium to what it is currently trading on the stock market, depending on which exchange you look at, of course. as we mentioned, this is a milestone for the currency given previously, institutional investors could not cash in on this because they are not allowed to buy from these regulated exchanges, and so now, they have this avenue in which they can actually bet on a cryptocurrency and interestingly, with the launch of these, we are also going to see ways for investors to bet against it, so hedge funds can now try and short queen if they are sceptical about its future. always, but nonetheless,

the cme group introduced its futures contract. largest holders, cameron and tyler winklevoss founded a crypto currency exchange called gemini. they explain why they made such an early big bet on this asset in 2013. >> we think bitcoin is like gold 2.0. whatever your reasons for investing in gold, whether it is scarcity, durability, fungibility, bitcoin matches or beats gold across the board in all those categories. it is not scarce. it is fixed. you can send it around like an email. it is a lot harder to do that with bars of gold. the market cap is $300 billion for bitcoin, for gold $6 trillion. we think bitcoin disrupts gold. we have said that since the market cap was $1 billion for bitcoin. we are 300 times more correct today. there is a chance it will be 20 more times from here on out. cory: is there any reason people -- is there any reason to believe that people are selling gold and buying bitcoin? >> anyone who likes the characteristics of gold will be attracted to bitcoin. >> there was a note talking about that. from his rese

ones that launched a week ago set the cme's future contracts are larger in sides. one contract equals five bit coins in terms of exposure versus 1-1 in that ratio the prices are close to each other. not different by that much we're only about 70 bucks apart in terms of total dollar value in difference between the futures. we traded contracts for the cme. roughly about 4,600 bit coins worth of exposurexposure not heavy compared to other future's markets but something to be aware of with regard to whether or not institutions are more involved in bitcoin's future trading, we spoke to the president of campbell and company, what they are is a commodity trading adviser. this is an institutional investment manager that helps develop trend-like strategies. in order for them to talk about getting to that market they have some concerns that needed a dress -- addressed. of course how they feed into the future's prices. liquidity. not a lot of trading so far. maybe it picks up. the extretreme volatility and w the regulatory aspects are going forward. a lot of concerns for the i

futures trading on the cme we'll check on the crypto currency's latest moves.t's monday, december 18th, 2017 "worldwide exchange" begins right now. ♪ ♪ >>> good morning very warm welcome to "worldwide exchange" on cnbc. i'

so the cme, for example says they will be using price limits that kick in during gains of losses of 7%, and 20% that would some in some case halt traiting more than 20% from the prior day's close. if it hits that limit. trading can only contribute. saying trading would be free through december cme says bitcoin futures will be priced as a premium. but in line with the pricing invention of other premium products there's a real war going on here, brian. it would be interesting to see who the winner will be back to you. >> it may be just the beginning of it too. have a good night. >>> one person getting in big is bo collins, now very bullish on bitcoin and maybe other crypt oassets. in technology, when your parents start to use it, it becomes uncool the teenagers don't want it anymore. is it a craze? >> it depends on your viewpoint. it certain has risen in value incredibly fast. this year it's up 14 1/2 times alone. bitcoin, that is there's other crypt occurrence sits that are up even more it feels like a craze by every standard metric, but if you compare it to a social network effect, for

bob, from the stock market to the bonds let's check in with the cme group in chicago, rick. >> good morning you look at a june chart going all the way back to 2008 for two year note yields, you'll see the high yield was 3% which means we're going to be comping back to 2008 for a long time what i wanted to reference is we clicked off another faceless point to 184 into tomorrow's point expected rate increase >> it was about 14 bases points between the 5s, but it is something we'll be talking about and i think it will quickly. at some point in the next quarter or so. let's switch to ten year let's look at september 1st of this year. see the way it's moved higher but really in a tight range. now let's have some fun. let's bear with boon yields from the same period. that was higher than when we settled for 10 we see a lot of indirect correlation. but now we're starting to separate in a big way. let's go to the combination chart. 209, 210 base points separate us why is that important? because much of what's going on in europe and japan have kept our rates down we were starting to buck that trend.

>> it can be as long as we answer the question, what is -- let's look at the exchanges, for instance, cme cboe >> listen, i understand that the last little run-up in the cme has been based in large part due to this bitcoin bonanza. look at cme, when bitcoin wasn't even a word, and this company was doing extraordinarily well terry duffy is a great ceo with or without bitcoin the stock goes higher. >> so it's not a stock i want to make sure people walk away with an answer so we can put the buzzer up there. would you agree with him >> as a cboe guy, i look at the volumes this year, i look at november's volumes, 22 million options trading per day, i mean, i think whether bitcoin's there or not, the one thing is people are always looking for leverage in the markets and the one place that they can get that still is the derivatives markets. can bitcoin help them? sure but they don't need bitcoin. >> so you say not? thank you. let's move on. square >> not a bitcoin stock >> she played the game perfectly. >> she could have read the phone book and you would have said she's played the game perfectly

we are live at the cme. vonnie: and marco wants to reiterate. leader mitchty mcconnell speaking on the floor. he mentioned the senate vote would take place today on the tax bill. 1:30.me close to senate rules require 10 hours of debate, the republicans may give up some of that time, and who knows what democrats might do. at least the senate majority leader is expecting the senate to vote on the tax bill this evening as well. ♪ vonnie: breaking news. president trump's pick to lead the export import bank has been opposed by the senate panel. that is a major setback. it was anticipated. garrett had been advocating for the abolishment of the xm -- ex-im bank and was nominated to lead the bank. headlines crossing that he is opposed by the senate. -- senate panel. mark: bitcoin trading lower, falling the most in nearly three weeks. extending stockpiles their drop. joining us now from the cme is the head of the could see group -- is the head of a trading group. not joe. it is todd, sorry. sometimes, i just read what is in front of me, but iraq and mise

triggering some trading halts at the cme and cboe joining us, jpmorgan strategist, and jeffrey kleintopou want to discuss bitcoin or not, but it has become part of the institutional discussion, has it not? >> it has, but i think the price action you're seeing today is a testament to the fact the market is still very young. there's still a lot of volatility involved. if you look at the bitcoin market, it's four tenths of a percent. it's still small still some room before it becomes widely adopted >> what is the standing answer to clients who have interest in it what do you say? >> bitcoin to me represents an investment as opposed to a currency economics tell us currencies can be exchanged easily for goods and services if you try to spend bitcoin in manhattan in the course of a week, you moibl have trouble do that to your point, becoming part of the institutional way. >> jeffrey, are you getting inquiries or not >> everywhere i go from the midwest to the southwest, everywhere across the u.s., people are asking. one of the things they're most worried about is it a bubble, and also, what ha

bitcoin futures start trading on the cboe on sunday and on the cme the following week. >>> jewelry is often described as an accessory. and jewelry, especially trendier and cheaper fast fashion jewelry, is usually treated as an accessory business. as tyler mathisen tells us, that's changed since two young entrepreneurs from new york city got the bright idea to start a company that makes fast fashion jewelry . >> we knew this was going to be successful within the first 48 hours of it going live. >> reporter: amy and daniella do their homework. how else could they have sold millions of on-fashion, hip, in the moment bangles, earrings, and necklaces, for 30 to $250 apiece? >> within a few days we'll have an idea for what she wants within that trend. >> reporter: "she" is bubble bar's typical customer. someone not unlike new yorkers amy and daniella. >> we're looking for that 25 to 40-year-old woman who wants on trend, fashion nov novelty jewelry. >> reporter: they met, moved on to business school, continuing their forays to places like sax fifth avenue, where they found themselves in the

you are dealing with the cme or cboe, which have clearing corporations. ey are going to guarantee the other side of the trade. nejra: allen, would you short bitcoin? alan: no, i would not. it is in a trend. this is the biggest bubble in history. it surpassed two lip mania. that was 64 times over three years, the increase. we surpassed that. looking at the bubbles we passed -- we passed the oil market from 2009 -- 2005 through 2008. japanese stock market from 1982 through 1992. this is the biggest bubble in history. it could get a lot eager. it has grown 17 times in 2017. a survey says that 75% of people that they ask think it could outperform what it did in 2017. if that happens, bitcoin goes to $260,000. i look at it as another trading vehicle. i think the technology, the blockchain technology, is a bigger deal than bitcoin itself. bitcoin is going to move. is goinghe technology to have more of an impact in the financial sector than the bitcoin itself. i guess if a bubble is going to keep growing, it is still an opportunity. n, thanksan -- knutma so much.