Cboe Digital Announces Groundbreaking Launch of Bitcoin and Ether Margin Futures Trading

Cboe Digital has officially declared the launch date of margin futures trading for Bitcoin (BTC) and Ether (ETH) on January 11, 2024. This move positions Cboe Digital as the first regulated crypto-native exchange and clearinghouse in the United States to offer both spot and leveraged derivatives trading on a single platform, according to a statement released by the company.

Committed to instilling trust, transparency, and responsible innovation in the crypto spot and derivatives markets, Cboe Digital introduces an intermediary-inclusive model. This model emphasizes the separation of duties to prevent conflicts of interest and utilizes an integrated exchange-clearinghouse approach, allowing the potential introduction of unique and groundbreaking offerings in 2024.

The margin futures will initially be financially settled, with plans to expand the product suite to include physically delivered products pending regulatory approvals. The margin model is designed to enable customers to trade futures without the need to post the full collateral upfront, providing greater capital efficiency compared to non-margined trading.

One of the noteworthy features of Cboe Digital’s unified spot and derivatives trading platform is its ability to facilitate easy access to both markets, creating opportunities for additional capital and operational efficiencies. This move aligns with the company’s vision of bringing liquidity and hedging opportunities to the crypto market, marking a crucial step in its continued growth.

The launch of margin futures is supported by a consortium of leading firms from both the cryptocurrency and traditional financial sectors, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies, and Wedbush.

John Palmer, President of Cboe Digital, expressed gratitude for the support of industry partners, emphasizing the significance of the upcoming launch for the company. Palmer noted that derivatives play a crucial role in traditional financial markets and expressed excitement about extending access to digital assets markets through margined trading.

Industry leaders also expressed their support for Cboe Digital’s initiative. Nicola White, CEO of B2C2, commended the focus on transparent markets and risk management resources. Chris Zuehlke, Global Head of Cumberland DRW, highlighted the importance of secure access to regulated futures markets for broader institutional participation.

The margin Bitcoin and Ether futures launch will complement Cboe Digital’s existing offering of spot trading for Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC. Contract margin requirements for the new futures will be published on Cboe Digital’s website daily, along with standardized portfolio analysis of risk (SPAN®) compatible risk parameter files for margin calculations.

As a leading provider of market infrastructure and tradable products, Cboe Global Markets remains committed to operating a trusted, inclusive global marketplace. The company’s foray into margin futures trading further solidifies its position at the forefront of cryptocurrency innovation.

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