On January 11, 2024, CBOEwill launch trading and clearing margined futures on Bitcoin and Ethereum.
Such contracts will allow clients to trade without posting full collateral, offering greater capital efficiency than trading on full margin.
Market makers for the instrument will include: B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, Tastytrade, Trading Technologies, and Wedbush.
“CBOE Digital will be the first regulated US unified cryptocurrency exchange and clearinghouse that will allow trading derivatives both on spot and with leverage on a single platform,” — the company said.
The platform plans to expand its lineup and add “physically settled” products subject to regulatory approval.
Currently, CBOE offers trading of non-margined futures on Bitcoin, Bitcoin Cash, Ethereum, Litecoin and USDC.
“Derivatives will provide additional liquidity and hedging opportunities,” — said John Palmer, president of CBOE Digital.
In June 2023 the CFTC approved the application for CBOE Clear Digital to offer margined futures on the top two cryptocurrencies by market capitalization.
Back in December 2017, CBOE became the first traditional exchange to launch Bitcoin futures, briefly ahead of its rival — CME.
In June 2019, amid a bear market, the platform removed the product from listing.
In May 2022, CBOE acquired the regulated crypto-platform ErisX, renaming it to the CBOE Digital Exchange.
In August, the institution-focused trading platform Crossover Markets agreed with CBOE Digital to develop a clearing solution for spot and futures contracts based on digital assets.