Canadian securities administrators remind investors of inherent risks associated with cryptocurrency futures contracts
MONTREAL, Dec. 18, 2017 /CNW Telbec/ - The Canadian Securities Administrators (CSA) would like to remind dealers and investors of the inherent risks associated with products linked to cryptocurrencies, including futures contracts. While these contracts may be traded on regulated exchanges and may be cleared by regulated central counterparties, the fact remains that their high level of risk will not be suitable for all types of investors.
"More specifically, the underlying value of these futures contracts is based on trading occurring on markets for cryptocurrencies which are largely unregulated," said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. "Therefore, there may be some circumstances such as price volatility in the underlying markets, which may lead to consequences such as sudden and significant margin calls in the futures market."
As is the case with every investment, an investor looking to participate in cryptocurrency futures trading should understand all of the risks involved.
The CSA reminds registered dealers and advisers that they must perform their own due diligence on these cryptocurrency-linked products before recommending them to their clients.
The CSA will continue to follow developments surrounding these initiatives. For additional information on the risks of cryptocurrencies, please refer to CSA Staff Notice 46-307 Cryptocurrency Offerings.
The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
| For more information: |
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| Sylvain Théberge Autorité des marchés financiers 514-940-2176 |
Alison Walker British Columbia Securities Commission 604-899-6713 |
| Kristen Rose Ontario Securities Commission 416-593-2336 |
Hilary McMeekin Alberta Securities Commission 403-592-8186 |
| Jason (Jay) Booth Manitoba Securities Commission 204-945-1660 |
Marissa Sollows Financial and Consumer Services Commission, New Brunswick 506-643-7853 |
| David Harrison Nova Scotia Securities Commission 902-424-8586 |
Steve Dowling Office of the Superintendent of Securities P.E.I. 902-368-6288 |
| Kimberly Ryan Office of the Superintendent of Securities Newfoundland and Labrador 709-729-2602 |
Rhonda Horte Office of the Yukon Superintendent of Securities 867-667-5466 |
| Jeff Mason Nunavut Securities Office 867-975-6591 |
Tom Hall Office of the Superintendent of Securities Northwest Territories 867-767-9305 |
| Shannon McMillan Financial and Consumer Affairs Authority of Saskatchewan 306-798-4160 |
SOURCE Autorité des marchés financiers
For further information: Sylvain Théberge, Autorité des marchés financiers, 514-940-2176
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