CFTC Licensed and Regulated Bitcoin Futures and Options Exchange
The Bitcoin derivatives platform Bitnomial cryptocurrency exchange which is based in Chicago has received a green signal from the U.S. Commodities Futures Trading Commission (CFTC) and now can offer Bitcoin futures and options contracts.
On Monday, April 20, the Bitnomial exchange announced in a press release that it has got approval from CFTC for offering physically-delivered bitcoin derivatives contracts and options trading to its traders.
Bitnomial Exchange to operate as a designated contract market
After gaining approval from the U.S. Commodities Futures Trading Commission (CFTC), the Bitnomial exchange can now serve as a designated contract market (DCM) in the United States according to the press release.
Also, Bitnomial has become ‘the first and only startup’ exchange that will offer “margined and physically delivered Bitcoin futures and options” in the country.
The company says in the press release after achieving the CFTC approval:
“The approval allows Bitnomial to tackle a confluence of generational shifts in financial markets: First, a new generation of customers are emerging as savvy with trading, technology, and delivery. Second, innovative new unregulated derivatives are booming with daily volumes topping $45B but may be illegal for many US traders. And third, the US futures market system is calcified by legacy structures and monopolies and has struggled to connect with these new growth areas.”
The CEO and Founder of Bitnomial exchange Luke Hoersten said that the company wants to create the Bitcoin Product complex and will initiate with three quarterly products which are Bitcoin futures, micro futures, and options.
US Traders gain bitcoin exposure via Bitnomial exchange
Jump Capital’s Peter Johnson says that most of the US traders do not have access to the physically settled Bitcoin derivatives. The Bitnomial exchange is a good source for them to gain bitcoin exposure.
Peter Johnson stated:
“Bitcoin derivatives are a fast-growing segment of the crypto market but physically settled Bitcoin derivatives are still largely inaccessible to most US traders. Bitnomial Exchange enables US traders to gain bitcoin exposure in a safe, regulatory compliant, and capital-efficient manner. These products are also reliably tied to the underlying asset price via the option for physical delivery.”