Cboe Digital to Launch Margin Futures for bitcoin and Ether in 2024

The Chicago Board Options Exchange (Cboe) Digital has announced its upcoming plans to introduce trading and clearing in margin futures for bitcoin, starting on January 11, 2024. This move establishes Cboe Digital as the first U.S. regulated cryptocurrency native exchange and clearinghouse to facilitate both spot and leveraged derivatives trading on a unified platform, as mentioned in the announcement.

The initial phase will focus on providing financially settled margined contracts on bitcoin, with future plans to expand the product suite to include physically delivered products, pending regulatory approvals. The margin model aims to enhance capital efficiency by allowing customers to engage in futures trading without the requirement of posting the full collateral upfront.

Cboe Digital’s unified spot and derivatives trading platform seeks to simplify customer access to both markets, unlocking opportunities for increased capital and operational efficiencies.

Support for the upcoming launch of margin futures will be provided by various firms in the cryptocurrency and traditional financial sectors, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies, and Wedbush.

Cboe Digital’s President on the Margin Futures Launch

John Palmer, President of Cboe Digital, expressed gratitude for the support from industry partners, highlighting the significance of the upcoming launch of margin futures. He emphasized the commitment to building trusted and transparent crypto markets and the potential of derivatives to foster additional liquidity and hedging opportunities in the digital assets markets, marking the next critical step in the market’s continued growth.

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The planned margin futures launch is in line with Cboe Digital’s existing offerings of bitcoin, other cryptocurrencies, and stablecoin trading on its spot crypto market. Furthermore, the contract margin requirements for the new futures will be published daily on Cboe Digital’s website, accompanied by standardized portfolio analysis of risk (SPAN) compatible risk parameter files for replicable margin calculations.

### News source: bitcoinmagazine.com

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