US-based options exchange Cboe Digital has announced plans to launch margin futures trading and clearing for Bitcoin (BTC) and Ethereum (ETH) starting January 11, 2024.
This development positions Cboe Digital as the first US-regulated cryptocurrency native exchange and clearinghouse to facilitate spot and leveraged derivatives trading on a single platform.
Cboe To Introduce Margined Contracts For BTC And ETH
Per the announcement, by adopting an “intermediary-inclusive” model and ensuring the separation of duties to prevent conflicts of interest, Cboe aims to establish a “robust and reliable” trading environment.
Initially, Cboe Digital will offer financially settled margined contracts for Bitcoin and Ether. It plans to expand its product suite to include physically delivered products, pending regulatory approvals.
The margin model implemented by Cboe Digital allows customers to trade futures without the requirement of posting the full collateral upfront. This approach allegedly enhances “capital efficiency” compared to trading futures on a non-margined basis.
Notably, the launch of margin futures by Cboe Digital has garnered support from prominent firms across the crypt
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Author: Ronaldo Marquez