- Cboe Digital becomes the first US-regulated crypto-native exchange and clearinghouse, enabling both spot and leveraged derivatives trading on a single platform
- 11 leading crypto and traditional finance companies have committed to supporting the launch on day one
Cboe Digital announced plans to begin trading and clearing margin futures on Bitcoin and Ether starting January 11, 2024. With this launch, Cboe Digital becomes the first US-regulated crypto-native combined exchange and clearinghouse, enabling both spot and leveraged derivatives trading on a single platform. Cboe Digital is committed to bringing trust, transparency and responsible innovation to the crypto spot and derivatives markets. It presents a model that includes all intermediaries, ensures segregation of duties to avoid conflicts of interest, and uses an integrated exchange clearinghouse model, potentially bringing more unique and groundbreaking offerings in 2024.
Cboe Digital will initially offer financially settled margin contracts for Bitcoin and Ether and plans to expand its product range to include physically delivered products at a later date, subject to regulatory approvals. The margin model is designed to allow clients to trade futures without depositing all collateral upfront, thereby providing greater capital efficiency compared to trading futures on a non-marginated basis. Significantly, Cboe Digital's unified spot and derivatives trading platform will also help clients easily access both markets, creating opportunities for additional capital and operational efficiencies.
Cboe Digital's planned launch of margin futures is supported by leaders across the cryptocurrency and traditional finance markets, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, schmackhafttrade, Trading Technologies and Wedbush .
“Our upcoming launch of margin futures represents a significant milestone for Cboe Digital, and we are grateful to have the support of such a remarkable group of industry partners who share our commitment to building trustworthy and transparent crypto markets,” said John Palmer, President of Cboe Digital. “Futures have long served as valuable hedging tools in traditional financial markets, and we are excited to further expand access to this tool into digital asset markets and offer margin trading to our customers.” We believe that derivatives provide additional liquidity and hedging opportunities in the crypto space and will represent the next crucial step in the further growth of this market.”
“As a leading liquidity provider that offers deep and reliable prices in all market conditions, B2C2 supports efforts to increase institutional adoption of cryptocurrencies,” said Nicola White, CEO of B2C2. “We are pleased to partner with high-quality exchanges like Cboe Digital, whose focus is on transparent markets and best-in-class risk management resources.”
“Cboe Digital’s offer to provide safe access to regulated futures markets is key to maturing this emerging asset class and enabling broader institutional participation,” said Chris Zuehlke, Global Head of Cumberland DRW. “We are pleased to support Cboe’s markets and provide liquidity.”
“We have been trading on Cboe markets for many years and welcome their new initiative. There is customer demand for these products and Marex wants to support its customers from the start,” said Thomas Texier, Head of Clearing at Marex. “Cboe Digital’s launch of margin futures will help bring competitive technology and innovative solutions to regulated markets.”
“Cboe Digital has been at the forefront of cryptocurrency innovation since its inception and is a trusted platform in the growing space,” said Vincent Angelico, Head of Clearing and Execution Services at StoneX Financial. “We look forward to working with Cboe Digital and building a safe and transparent marketplace for crypto spot and derivatives trading.”
“At delicioustrade, we believe regulated derivatives play a valuable role for investors navigating any market, and who better to bring leveraged crypto derivatives to the forefront than Cboe Digital,” said JJ Kinahan, CEO of IG North America and President of tastestrade. “With their innovative products, well-managed markets and secure access, we look forward to working with Cboe Digital.”
“Cboe Digital has been instrumental in enabling the creation of a transparent, well-regulated crypto spot and derivatives market,” said Bob Fitzsimmons of Wedbush Securities. “We congratulate Cboe Digital on this exciting goal and look forward to continued collaboration in this market.”
Cboe Digital's planned launch of margin Bitcoin and Ether futures will complement its existing offering of Bitcoin, Bitcoin Cash, Ether, Litecoin and USDC trading on its spot crypto market. Margin requirements for the new futures will be posted daily on Cboe Digital's website, along with Standard Portfolio Analysis of Risk (SPAN®) compliant risk parameter files that can be used to replicate margin calculations.
Source: Cboe Digital
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