Cboe Clear Digital announced it has received the necessary approval from the Commodity Futures Trading Commission (CFTC) to expand its product offering to include margined futures contracts. The initial product launch will include physically and financially settled Bitcoin and Ether contracts in the second half of 2023. Cboe Digital is the first U.S. regulated crypto native exchange and clearinghouse combination platform to offer leveraged derivatives products. Cboe Digital’s vision to bring trust and transparency to crypto spot and derivatives markets is an intermediary-inclusive model.
Cboe Digital to date has offered trading and clearing of Bitcoin and Ether futures on a fully collateralized basis, which require customers to outlay the full amount of a futures contract upfront. The new margin model will require only a percentage of the total posted as collateral, enabling customers to trade futures in a less capital-intensive way. Trades will be executed and cleared through an approved set of member Futures Commission Merchants (FCMs) with Cboe Digital’s clearinghouse acting as the central counterparty.
“We are grateful to the CFTC for working with us as we continue to build out our vision for a transparent, U.S. regulated crypto marketplace that welcomes intermediaries,” said John Palmer, President of Cboe Digital. “Derivatives are a time-tested and valuable tool that enable investors to gain market exposure and manage their risk.”
Cboe Digital has the unique ability to trade spot and margin futures on the same platform, which fills a key gap in the US landscape, and brings greater cost and operational efficiencies to enhance customers’ trading experience. In addition to margin futures, Cboe Digital’s spot market supports trading in Bitcoin, Bitcoin Cash, Ether, Litecoin and USDC. Cboe Digital’s unified spot and derivatives markets are underpinned by responsible innovation.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market infrastructure and tradable products, delivers cutting-edge trading, clearing and investment solutions to market participants around the world. The company is committed to operating a trusted, inclusive global marketplace, providing leading products, technology and data solutions that enable participants to define a sustainable financial future. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across North America, Europe and Asia Pacific. To learn more, visit www.cboe.com.
About Cboe Digital
Cboe Digital offers individuals and institutions a single, innovative platform to access crypto spot and futures markets. By combining professional tools, advanced technology, sophisticated regulatory oversight, and a diverse product set, Cboe Digital offers compliant, capital markets friendly workflows to digital market participants. Backed by some of the world’s largest trading firms and financial institutions, Cboe Digital brings transparency and reliability to the digital asset class.
Cboe Digital Futures are offered through Cboe Digital Exchange, LLC, a CFTC registered DCM and Cboe Clear Digital, LLC, a CFTC registered DCO. The CFTC does not have regulatory oversight authority over virtual currency products including spot market trading of virtual currencies. Cboe Digital’s Spot Market is not licensed, approved or registered with the CFTC and transactions on the Cboe Digital Spot Market are not subject to CFTC rules, regulations or regulatory oversight. Cboe Digital Spot Market is subject to certain state licensing requirements and operates in NY pursuant to Cboe Clear Digital’s license to engage in virtual currency business activity by the New York State Department of Financial Services. Cboe Digital and the Cboe Digital logo are trademarks of the Cboe Global Markets Group of companies. To learn more, visit www.cboedigital.com.