- Cboe Digital to become first U.S. regulated crypto
native exchange and clearinghouse to enable both spot and leveraged
derivatives trading on a single platform
- 11 leading firms across crypto and traditional
finance committed to supporting launch on Day 1
CHICAGO, Nov. 13, 2023 /PRNewswire/
-- Cboe Digital today announced plans to launch trading and
clearing in margin futures on Bitcoin and Ether,
beginning January 11, 2024.
With this launch, Cboe Digital will become the first U.S.
regulated crypto native combined exchange and
clearinghouse to enable both spot and leveraged derivatives trading
on a single platform. Committed to bringing trust, transparency and
responsible innovation to the crypto spot and
derivatives markets, Cboe Digital presents an
intermediary-inclusive model, ensures separation of duties to avoid
conflicts of interest, and uses an integrated
exchange-clearinghouse model that will allow it to potentially
bring more unique and groundbreaking offerings in 2024.
Cboe Digital will initially offer financially settled margined
contracts on Bitcoin and Ether and plans to expand its
product suite to include physically delivered products at a later
date, subject to regulatory approvals. The margin model is designed
to allow customers to trade futures without posting the full
collateral up front, thereby providing greater capital efficiency
compared to trading futures on a non-margined basis. Significantly,
Cboe Digital's unified spot and derivatives trading platform will
also help enable customers to easily access both markets, creating
opportunities for additional capital and operational
efficiencies.
Cboe Digital's planned launch of margin futures will be
supported by leading firms across the cryptocurrency
and traditional financial marketplace, including B2C2, BlockFills,
CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial,
Talos, tastytrade, 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 trusted and transparent crypto
markets," said John Palmer,
President of Cboe Digital. "Futures have long served as
valuable hedging instruments in the traditional financial markets,
and we couldn't be more excited to extend access to this tool
further into the digital assets markets and offer margined trading
for our customers. We believe derivatives will foster additional
liquidity and hedging opportunities in crypto and
represent the next critical step in this market's continued
growth."
"As a leading liquidity provider delivering deep and reliable
pricing across market conditions, B2C2 supports efforts to enhance
institutional adoption of cryptocurrencies," said
Nicola White, CEO of B2C2. "We
are pleased to be working with high-quality exchanges such as Cboe
Digital whose focus is on transparent markets and superior risk
management resources."
"Cboe Digital's offer in providing secure access to regulated
futures markets is key to maturing this nascent asset class and
enabling broader institutional participation," said Chris Zuehlke, Global Head of Cumberland DRW.
"We are pleased to support and provide liquidity to Cboe's
markets."
"We've been trading on Cboe markets for many years, and we
welcome their new initiative. There is customer demand for
these products, and Marex is keen to support its customers from the
outset," said Thomas Texier, Head of
Clearing at Marex. "Cboe Digital's margin futures launch 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 secure and transparent marketplace
for crypto spot and derivatives trading."
"At tastytrade, 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 tastytrade. "With their innovative products,
well-governed markets and secure access, we look forward to working
with Cboe Digital."
"Cboe Digital has been instrumental in helping facilitate the
creation of a transparent well-regulated crypto spot
and derivatives market," said Bob
Fitzsimmons at Wedbush Securities. "We congratulate
Cboe Digital on this exciting target 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. 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 that can be used to replicate
margin calculations.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market
infrastructure and tradable products, delivers cutting-edge
trading, clearing and investment solutions to market participants
around the world. The company is committed to operating a trusted,
inclusive global marketplace, providing leading products,
technology and data solutions that enable participants to define a
sustainable financial future. Cboe provides trading solutions and
products in multiple asset classes, including equities,
derivatives, FX, and digital assets, across North America, Europe and Asia
Pacific. To learn more, visit www.cboe.com.
About Cboe Digital
Cboe Digital offers individuals and institutions a single,
innovative platform to access crypto spot and futures
markets. By combining professional tools, advanced technology,
sophisticated regulatory oversight, and a diverse product set, Cboe
Digital offers compliant, capital markets friendly workflows to
digital market participants. Backed by some of the world's largest
trading firms and financial institutions, Cboe Digital brings
transparency and reliability to the digital asset class.
Cboe Digital Futures are offered through Cboe Digital Exchange,
LLC, a CFTC registered DCM and Cboe Clear Digital, LLC, a CFTC
registered DCO. The CFTC does not have regulatory oversight
authority over certain virtual currency products including spot
market trading of virtual currencies. Cboe Digital's Spot Market is
not licensed, approved or registered with the CFTC and transactions
on the Cboe Digital Spot Market are not subject to CFTC rules,
regulations or regulatory oversight. The Cboe Digital Spot Market
may be subject to certain state licensing requirements and operates
in NY pursuant to Cboe Clear Digital license ("BitLicense") to
engage in virtual currency business activity by the New York State Department of Financial
Services. Cboe Digital and the Cboe Digital logo are trademarks of
the Cboe Global Markets Group of companies. To learn more, visit
www.cboedigital.com.
Cboe Media
Contacts
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Cboe Analyst
Contact
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Angela
Tu
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Jessica
Darmoni
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Kenneth Hill,
CFA
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+1-646-856-8734
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+1-312-756-8716
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+1-312-786-7559
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atu@cboe.com
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jdarmoni@cboe.com
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khill@cboe.com
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CBOE-C
CBOE-OE
Cboe® and Cboe Global Markets® are registered trademarks and
Cboe Digital™ and Cboe ™Clear are service
marks of Cboe Global Markets, Inc. and its
subsidiaries. All other trademarks and service marks are the
property of their respective owners.
Cboe Global Markets, Inc. and its affiliates do not recommend
or make any representation as to possible benefits from any
securities, futures, virtual currencies or investments, or
third-party products or services. Cboe Global Markets, Inc. is not
affiliated with BlockFills, CQG, Marex, StoneX, Talos Trading,
Trading Technologies, and Wedbush.1 Investors
should undertake their own due diligence regarding their
securities, futures, virtual currencies and investment practices.
This press release speaks only as of this date. Cboe disclaims any
duty to update the information herein.
Nothing in this announcement should be considered a
solicitation to buy or an offer to sell any futures or virtual
currencies in any jurisdiction where the offer or solicitation
would be unlawful under the laws of such jurisdiction.
Nothing contained in this communication constitutes tax, legal or
investment advice. Investors must consult their tax adviser or
legal counsel for advice and information concerning their
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extent permitted by applicable law, make no warranty, expressed or
implied, including, without limitation, any warranties as of
merchantability, fitness for a particular purpose, accuracy,
completeness or timeliness, the results to be obtained
by recipients of the products and services described
herein.
Cautionary Statements Regarding Forward-Looking
Information
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve a number of risks and uncertainties. You can identify
these statements by forward-looking words such as "may," "might,"
"should," "expect," "plan," "anticipate," "believe," "estimate,"
"predict," "potential" or "continue," and the negative of these
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our expectations, assumptions or projections about the future other
than statements of historical fact are forward-looking statements.
These forward-looking statements, which are subject to known and
unknown risks, uncertainties and assumptions about us, may include
projections of our future financial performance based on our growth
strategies and anticipated trends in our business. These statements
are only predictions based on our current expectations and
projections about future events. There are important factors that
could cause our actual results, level of activity, performance or
achievements to differ materially from those expressed or implied
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We operate in a very competitive and rapidly changing
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can we assess the impact of all factors on our business or the
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actual results to differ materially from those contained in any
forward-looking statements.
Some factors that could cause actual results to differ
include: the loss of our right to exclusively list and trade
certain index options and futures products; economic, political and
market conditions; compliance with legal and regulatory
obligations; price competition and consolidation in our industry;
decreases in trading or clearing volumes, market data fees or a
shift in the mix of products traded on our exchanges; legislative
or regulatory changes or changes in tax regimes; our ability to
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vulnerabilities and breaches; our ability to attract and retain
skilled management and other personnel, including compensation
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our dependence on and exposure to risk from third parties; global
expansion of operations; factors that impact the quality and
integrity of our indices; our ability to manage our growth and
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rights of others and the costs associated with protecting our
intellectual property rights; our ability to minimize the risks,
including our credit, counterparty, investment, and default risks,
associated with operating a European clearinghouse; our ability to
accommodate trading and clearing volume and transaction traffic,
including significant increases, without failure or degradation of
performance of our systems; misconduct by those who use our markets
or our products or for whom we clear transactions; challenges to
our use of open source software code; our ability to meet our
compliance obligations, including managing potential conflicts
between our regulatory responsibilities and our for-profit status;
our ability to maintain BIDS Trading as an independently managed
and operated trading venue, separate from and not integrated with
our registered national securities exchanges; damage to our
reputation; the ability of our compliance and risk management
methods to effectively monitor and manage our risks; restrictions
imposed by our debt obligations and our ability to make payments on
or refinance our debt obligations; our ability to maintain an
investment grade credit rating; impairment of our goodwill,
long-lived assets, investments or intangible assets; the impacts of
pandemics; the accuracy of our estimates and expectations;
litigation risks and other liabilities; and operating a digital
asset business and clearinghouse, including the expected benefits
of our Cboe Digital acquisition, cybercrime, changes in digital
asset regulation, losses due to digital asset custody, and
fluctuations in digital asset prices. More detailed information
about factors that may affect our actual results to differ may be
found in our filings with the SEC, including in our Annual Report
on Form 10-K for the year ended December 31,
2022 and other filings made from time to time with the
SEC.
We do not undertake, and we expressly disclaim, any duty to
update any forward-looking statement whether as a result of new
information, future events or otherwise, except as required by law.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof.
1 B2C2, DRW Cumberland, Robinhood, and tastytrade are
minority investors in Cboe Digital.
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SOURCE Cboe Global Markets, Inc.