Cboe Digital Breaks Ground: Introducing Bitcoin and Ethereum Futures
Cboe Digital has announced a groundbreaking move in the digital assets market, set for January 11, 2024.
Backed by a consortium of 11 industry leaders, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies, and Wedbush, the initiative positions Cboe Digital as the first U.S.-regulated crypto-native exchange and clearinghouse.
This marks a significant stride in merging traditional financial trading with the digital asset landscape, showcasing the growing acceptance of cryptocurrencies. Initially focusing on financially settled margined contracts for Bitcoin and Ether, Cboe Digital aims to later include physically delivered products, pending regulatory approval.
The margin model is a highlight, enabling futures trading without full upfront collateral, enhancing capital efficiency. John Palmer, President of Cboe Digital, emphasized the consortium’s support and the venture’s significance.
The platform’s existing suite of cryptocurrencies is complemented by a commitment to transparency through daily margin requirement publications.
Cboe Digital secured approval to offer leveraged derivatives products, aligning with the CFTC’s endorsement. The initial product launch is scheduled for H2 2023.
Previously, Cboe Digital required full collateral upfront for Bitcoin and Ether futures, but the new margin model allows trading with a percentage of the total collateral, reducing capital intensity. Executed through approved Futures Commission Merchants, Cboe Digital’s clearinghouse acts as the central counterparty.