- CFTC ruled on June 5
- Cboe previously only offered fully collateralized futures
- The new product will significantly expand its reach
- Cboe is the only exchange in the United States that allows trading in spot market and derivative products
The Cboe Digital exchange applied to launch margin-based futures for crypto assets in late October last year. At the same time, the company bought ErisX, through which it planned to enter the new market.
Cboe Digital had planned to release an exchange product in early 2023, but apparently the securities were delayed.. Yesterday, June 5, the Commodity Futures Trading Commission (CFTC) approved the exchange’s application.</nbsp;
The company previously offered trading exclusively in fully collateralized futures.. This means that the trader had to deposit the full amount of the contract before a deal could be made.
The new exchange product has a much lower entry threshold. Margin futures do not require full collateral to open a position.
Factually, this will pave the way for small businesses to enter the cryptocurrency market. Cboe said it wanted to give its customers the opportunity to invest in a promising industry without having to “touch” physical assets.
It is currently the only exchange in the U.S. through which both derivatives and spot market positions can be traded. It remains fully adjustable.