Cboe Groups Inc. To Introduce Derivatives Contracts On Other Cryptocurrencies

Cboe Signals Big Plans For Trading Cryptocurrency Derivatives


Cboe Groups Inc. to launch derivatives contracts on other cryptocurrencies.

  • Cboe’s president declared that cryptocurrencies are ‘here to stay.’
  • CME wants bitcoin to be regulated.

United State: Cboe Groups Inc., which owns the Chicago Board Options Exchange (the largest US options exchange), recently stated that it wants to expand beyond the Bitcoin futures

Last December, Cboe Groups Inc., an exchange that has quickly become one of the biggest believers in cryptocurrencies, introduced Bitcoin future contracts, which trade thousands of times daily, representing tens of millions of dollars of Bitcoin. The exchange wants to introduce a similar futures contracts on other digital currencies.

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Chris Concannon, the Cboe President stated on Wednesday at a Futures Industry Association conference in Boca Raton, Florida that “the vision is to have a crypto complex.” He added that cryptocurrencies are “here to stay.”

Bitcoin futures have helped in introducing the bitcoin craze to a new class of investors who want to make leveraged bets and short sales on Bitcoin while doing business on a regulated exchange. Introduction derivatives contracts could signal that an asset class is reaching the more professional corners of Wall Street.

Concannon and Ed Tilly, the Cboe CEO, who spoke at the same conference, didn’t actually specify the digital currencies they’re targeting. However, the two executives stated that their decision would be based on the demand from customers and conversations with regulators. Presently, according to Coinmarketcap.com, Ether, Ripple, Bitcoin Cash and Litecoin, are the biggest cryptocoins after Bitcoin. Tilly added that Cboe would also like to list exchange-traded notes and funds tied to digital currencies.

Cboe’s close rival CME Group Inc., who also introduced Bitcoin futures last December, said last month through its CEO, Terry Duffy, that the exchange would take a cautious stance toward expanding to other cryptocurrencies.

Julie Holzrichter, CME Chief Operating Officer, while speaking at the CME’s conference on Wednesday said that while CME took a measured approach with Bitcoin futures, “as an exchange, sometimes you have to take a risk.” She said CME would like Bitcoin to be regulated and that “we made sure to launch with very high margins and tight limits.”

It seems Nasdaq Inc. is as well interested in offering Bitcoin derivatives, however, Adena Friedman, Nasdaq CEO on Wednesday said that Nasdaq needs to offer something different enough from what’s currently in the market. She said in a panel discussion at the conference on Wednesday:

“The exchange environment for the actual physical instrument is unregulated. That creates a different level of risk.”

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