News

US Options Exchange Cboe To Promote Margined Bitcoin And Ethereum Futures

Key Points:

  • Cboe Digital will debut margin futures trading on Bitcoin and Ethereum on January 11, 2024.
  • US options exchange Cboe‘s innovative approach allows futures trading without upfront collateral.
  • Supported by major firms like B2C2 and StoneX Financial, Cboe’s move is expected to bring added liquidity and hedging opportunities to the digital asset market.
Cboe Digital, a leading cryptocurrency platform, has revealed its groundbreaking plan to initiate trading and clearing in margin futures on Bitcoin and Ether, commencing January 11, 2024.
US Options Exchange Cboe To Promote Margined Bitcoin And Ethereum Futures 2

This move positions Cboe Digital as the inaugural U.S.-regulated crypto native exchange and clearinghouse, facilitating both spot and leveraged derivatives trading on a unified platform.

Dedicated to instilling trust, transparency, and responsible innovation in crypto markets, US options exchange Cboe adopts an intermediary-inclusive model, ensuring the separation of duties to prevent conflicts of interest. The integrated exchange-clearinghouse model is poised to introduce unique offerings in 2024.

Initially, US options exchange Cboe will provide financially settled margined contracts on Bitcoin and Ethereum, with plans to expand into physically delivered products contingent upon regulatory approvals. The margin model offers a capital-efficient approach, enabling customers to trade futures without the need for full collateral upfront.

John Palmer, President of US options exchange Cboe, expressed gratitude for the support from industry partners, emphasizing the significance of margin futures in expanding access and offering hedging opportunities in the evolving digital asset market. The integration of derivatives is viewed as a crucial step in advancing the market’s liquidity and growth.

Cboe Digital’s unified spot and derivatives trading platform will simplify customer access to both markets, fostering opportunities for enhanced capital and operational efficiencies. Notably, the margin futures launch is backed by key industry players, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies, and Wedbush.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

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