Cboe Digital to Launch Margined Crypto Futures

Cboe Digital says it is to become first US regulated crypto native exchange and clearing house to enable both spot and leveraged crypto derivatives trading on a single platform, adding that 11 firms across crypto and traditional finance have committed to supporting launch.

The exchange group says the new offering with commence on 11 January 2024, and will initially offer financially settled margined contracts on Bitcoin and Ether. Cboe says it plans to expand its product suite to include physically delivered products at a later date, subject to regulatory approvals.

It adds 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,” it states.

The launch will be supported by 2C2, 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,” says 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.”

Chris Zuehlke, global head of Cumberland DRW, adds, “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.”

Meanwhile, Thomas Texier, head of clearing at Marex, says, “There is customer demand for these products, and Marex is keen to support its customers from the outset. Cboe Digital’s margin futures launch will help bring competitive technology and innovative solutions to regulated markets.”