Goldman Sachs Group Inc . asked some patients set aside monies equal to the full value of their bitcoin futures business as a condition for clearing the deal, is in accordance with people familiar with the investments.
The requires dissuaded some patrons from seeking to clear sells through the bank and extended them to take their business abroad, said the people, who invited not to be identified considering the issues. The guidelines are inclusive of other margin requirements such as Options Clearing Corp.’s 44 percent, required to clear contracts transactions on the Cboe Global Markets Inc ., and the 47 percent to be demanded by CME Group Inc. when it begins trading bitcoin futures next week.
” Margin decisions are based on multiple factors and run on a case-by-case basis,” Tiffany Galvin, a spokesperson for New York-based Goldman Sachs, said Thursday in a statement.
The bank is one of a handful that has cleared the crafts since the Cboe embarked offering futures contracts earlier this week. Bitcoin’s volatility spurred many massive banks to hold off on clearing sells. Alternatives Clearing and CME invoked their margin requirements amid wild price moves in the market.
It’s not uncommon for a brokerage to prescribe steeper requirements than the exchange. Interactive Brokers Group Inc ., which has said it administered 53 percent of the first day’s trading in Cboe’s bitcoin futures, will require a margin of 50 percent for long investments, and about 240 percentage for short selling, based on current rates, according to Interactive spokeswoman Kalen Holliday.
A margin requirement is how much investors must set aside so that other parties in the trade know any losses can be covered. The guidelines for bitcoin futures are several times that of merchandises such as gold and oil.