This is good news.
Regarding the force settle, does it occur at the feed with no penalty at all? I think that if there was even a small penalty, like 1%, then it would make it a lot harder for people to profit via forced settlement by controlling the BTS price. The small penalty would swing it back into the bitAsset shorts favor in the long term.
But it seems the plan is that you can force settle a bitCNY at 1.00 CNY, and that shorts will want more than 1.00 CNY in order to create one, to protect themselves. That is, we have a price floor on bitAssets, but the price can rise some above the floor.
I guess its just really important for people to not short bitAssets unless they are getting a a bit of a premium, to protect themselves from this.