Cboe Global Markets plans to close its cryptocurrency
exchange in the third quarter of 2024. Cash-settled Bitcoin and ether futures contracts will move from the Cboe Digital Exchange to the Cboe Futures Exchange in the first half of 2025. According to the press release, John Palmer, the President of Cboe Digital, will head US
Derivatives Market Development.
Consolidating Crypto Futures
Cboe aims to consolidate all its US futures products
into one exchange to enhance efficiency for clients globally. By leveraging its
global derivatives franchise, the options exchange aims to support
exchange-traded digital asset derivatives markets.
Fred Tomczyk, the Chief Executive Officer of Cboe Global Markets, stated: “Refocusing our digital asset business enables us to
refine our strategy, leveraging our core strengths in derivatives, technology
excellence and product innovation to help maximize opportunities for our
business and deliver efficiencies for Cboe and our clients.”
“We believe these changes enable greater optimization
and strategic alignment for our business across geographies and asset classes,
further supporting our long-term growth strategy.”
NEWS UPDATE: Cboe Global Markets Realigns Digital Asset Business Leveraging Strength and Expertise in Derivatives and Clearing. Read the press release: https://t.co/8oyCqjciYZ pic.twitter.com/9N0O8LYchu
— Cboe (@CBOE) April 25, 2024
Cboe Aligns Clearing Business
Notably, Cboe will maintain ownership and operation of
Cboe Clear Digital, its clearing arm, and align it with Cboe Clear Europe under
unified leadership. This exchange mentioned that this alignment will better
serve clients globally.
According to Cboe, the closure of the crypto exchange will
not have a significant impact on its net revenue in 2024. The company anticipates
to save on its expenses from the closure. Further details about these changes are
expected during the first-quarter 2024 earnings call on May 3, 2024.
Last year, Cboe Digital launched margin futures for
Bitcoin and ether. Backed by a consortium of 11 firms, including notable names
like B2C2 and Cumberland DRW, Cboe Digital noted that it was enhancing crypto
trading by combining spot and leveraged derivatives trading on a unified
platform.
Cboe Digital became one of the first US-regulated
exchanges and clearinghouses after integrating spot and leveraged derivatives
trading. The addition of physically delivered products further
diversifies its offerings, catering to the evolving needs of crypto traders.
This article was written by Jared Kirui at www.financemagnates.com.
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