<img src="http://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cfl_progressive%2Ch_1200%2Cq_auto:good%2Cw_1200/MTc5Mjk3ODA5NDM0NzQ4NTY3/cboe-will-not-relist-bitcoin-futures-contracts-for-march.jpg” />
Chicago Board Options Exchange (Cboe) Digital bitcoin-and-ether-futures-on-january-11-2024-backed-by-crypto-and-traditional-finance-players-301986086.html”>Announced
Cboe Digital, which initially offers financially settled margin contracts in bitcoin, plans to diversify its product set to include physically delivered products, pending regulatory approvals. The margin model is designed to improve capital efficiency by allowing clients to participate in futures trading without the requirement to deposit full collateral upfront.
The unified spot and derivatives trading platform provided by Cboe Digital aims to optimize client access to both markets, unlocking opportunities to increase capital and operational efficiency.
The upcoming launch of margin futures will be supported by other companies in the traditional and cryptocurrency 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 his gratitude for the support of industry partners, saying: “Our upcoming launch of margin futures represents an important milestone for Cboe Digital and we are grateful to have the support of such a group. notable of industry partners who share our commitment to building trustworthy and transparent crypto markets. Futures have long served as valuable hedging instruments in traditional financial markets, and we couldn’t be more excited to expand access to this tool to digital asset markets and offer margin trading. “For our clients. “We believe derivatives will foster additional liquidity and hedging opportunities in cryptocurrencies and represent the next critical step in the continued growth of this market.”
The planned launch of margin futures aligns with Cboe Digital’s existing offerings of bitcoin, other cryptocurrencies, and stablecoin trading on its cryptocurrency spot market. Contract margin requirements for the new futures will be posted daily on the Cboe Digital website, accompanied by risk parameter files supporting Standardized Portfolio Risk Analysis (SPAN) for replicable margin calculations.
