The U.S. Commodity Futures Trading Commission (CFTC) has actually authorized a new bitcoin derivatives trading platform. Bitnomial Exchange will note margined and physically provided bitcoin futures and alternatives. Besides Bitnomial, the CFTC has actually just authorized a handful of other platforms to offer bitcoin derivatives trading, such as CME, Cboe, and Bakkt.
CFTC Approves New Bitcoin Derivatives Exchange
The CFTC revealed Monday that it has actually released an order approving Chicago-based Bitnomial Exchange status as a designated agreement market (DCM), reliable on the very same day. The U.S. leading derivatives regulator discussed that after evaluating Bitnomial’s application and associated exhibitions:
The CFTC figured out that Bitnomial Exchange showed its capability to adhere to the requirements of the CEA [Commodity Exchange Act] and the CFTC’s policies relevant to DCMs.
According to the CFTC, designated agreement markets “are exchanges that might note for trading futures or alternative agreements based upon all kinds of products which might permit gain access to to their centers by all kinds of traders, consisting of retail consumers.”
With Monday’s approval, Bitnomial Exchange need to adhere to all arrangements of the Commodity Exchange Act, the CFTC’s requirements, and representations it sent as part of its application for classification as an agreement market.
Bitnomial to List Margined and Physically Delivered Bitcoin Futures and Options
Bitnomial is a bitcoin derivatives exchange established in 2014. The business submitted an application with the CFTC to run an exchange for deliverable cryptocurrency derivatives in 2016. In 2018, it raised Series A financing from financiers, such as Jump Capital, Coinbase Ventures, Digital Currency Group, and RRE Ventures.
According to the Bitnomial, the CFTC has actually authorized its exchange “for U.S. bitcoin futures and alternatives trading with margin and physical shipment.” Three bitcoin derivatives items are noted on Bitnomial’s site: Bitcoin U.S. Dollar Futures, Deci Bitcoin U.S. Dollar Futures, and Bitcoin U.S. Dollar Options. The business included:
Bitnomial will note margined and physically provided bitcoin futures and alternatives, the very first and just start-up exchange to accomplish these abilities.
The CFTC has to date just authorized a handful of trading platforms — CME, Cboe, Bakkt, Erisx, and Ledgerx — to offer bitcoin derivatives items. Cboe stopped offering bitcoin futures early in 2015.
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