On Monday, Cboe Global Markets (CBOE.Z) announced regulatory authorization to provide leveraged derivatives products on its digital trading platform, including physically and financially settled bitcoin and ether margined futures contracts.
The U.S. Commodity Futures Trading Commission cleared Cboe Digital to provide leveraged derivatives when the contracts start in the second half.
Chicago-based Cboe said margined contracts would allow users to trade crypto futures with less collateralized cash, executed and cleared by licensed futures commission merchants. In addition, Cboe Digital’s clearinghouse will lessen default risks.
Cboe Digital trades and clears bitcoin and ether futures completely collateralized.
“Derivatives are a time-tested and valuable tool that enable investors to gain market exposure and manage their risk,” said Cboe Digital president John Palmer.
Cboe Digital allows spot trading of bitcoin, cash, ether, litecoin, and USDC.
Chicago-based Cboe announced the acquisition of ErisX on Oct. 20, 2021. Bitcoin was over $67,000. The acquisition was finalized in May 2022, and in July, with bitcoin prices in the $20,000-$25,000 region, the exchange operator wrote down $460 million on the business, which it renamed Cboe Digital.
In November, Cboe announced 13 minority ownership investments in Cboe Digital, including Robinhood Markets Inc (HOOD.O), Interactive Brokers (IBKR.O), Virtu Financial (VIRT.O), Jane Street, Jump Crypto, DRW, and tastytrade, owned by IG Group (IGG.L).
In November, FTX filed for bankruptcy and withdrew its CFTC application to trade cryptocurrency derivatives directly.