Cboe Partners with FTSE Russell in Digital Asset Reset

Cboe Global Markets has partnered with index provider FTSE Russell to develop new digital asset derivatives, including cash-settled index options. In 2022 Cboe completed the acquisition of Eris Digital Holdings (ErisX), which operated a U.S. based digital asset spot market, a regulated futures exchange and a regulated clearinghouse. To enter digital asset spot and derivatives markets, including clearing and settlement, ErisX was operated as a subsidiary, Cboe Digital, with its own regulated designated contract trading venue for physically delivered futures contracts, cleared through a regulated derivatives clearing organization, Cboe Clear Digital. Futures contracts from ErisX could be traded alongside its spot market on a unified platform. In April this year Cboe decided to close the Cboe Digital spot market and migrate the trading and clearing of Cboe Digital’s cash-settled bitcoin and ether futures into its existing global derivatives and clearing businesses. Catherine Clay, global head of derivatives at Cboe Global Markets, In a story in Markets Media said that a few things started to come to light during the operation of Cboe Digital. In addition to closing the digital spot market, Cboe is filing with the Commodity and Futures Trading Commission to migrate the existing cash-settled bitcoin and ether futures contracts to Cboe Futures Exchange. She argued that the shift makes sense given Cboe’s expertise in derivatives. The group will not have to develop two different futures exchanges and digital assets can benefit from the advanced functionality that already exists on Cboe Futures Exchange (CFE). Clients will also not have to connect to two different futures exchanges within Cboe. For example, they will be able to trade VIX and bitcoin futures in one place. “This allows us to innovate more quickly and efficiently in the digital asset space,” Clay added. “We have some ideas about new products that we want to bring to CFE after the migration, dependent on regulatory approval.”