CBOE Signs with Gemini in Bitcoin Market Data Agreement
- Pending approval by the CFTC, the CBOE plans to launch cash-settled Bitcoin futures by late 2017/early 2018.
Chicago-based CBOE Holdings, the largest US options exchange, today announced that it has secured a multi-year exclusive license from Gemini Trust, the bitcoin exchange created by Tyler and Cameron Winklevoss.
The London Summit 2017 is coming, get involved!
The deal allows CBOE to use Gemini's market data, including its daily bitcoin auction values, to list and trade bitcoin derivatives products, with other digital currency contracts expected to follow.
Pending regulatory approval by the CFTC, the firm plans to launch cash-settled Bitcoin futures by the end of this year or early 2018. The deal also gives CBOE additional rights to roll out further cryptocurrency derivatives based on Gemini market data, and to distribute its market data over the exchange’s feeds.
Should the company secure the authorities’ permission to operate as a regulated venue for derivative contracts settling in digital currencies, it will open the market up to a much larger customer base who are currently unable to participate in the Bitcoin market due to compliance restrictions.
While a notable milestone, the move comes a few weeks after the CFTC granted blockchain startup LedgerX its official registration as a derivatives clearing organization (DCO).
As for the Gemini's creators, the twins are early investors in Bitcoin and have been highly bullish on its future value. They proposed an exchange traded fund (ETF) that would track Bitcoin prices, allowing investors to gain exposure to bitcoin on a fully regulated venue. However, the US Securities and Exchange Commission (SEC) denied their application earlier this year.
Ed Tilly, CBOE Holdings CEO, commented: "CBOE is not only a home to options, derivatives and the VIX but also ETF innovations and foreign exchange. This makes us the natural choice for the development and trading of bitcoin futures. We very much look forward to responding to the growing interest in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term through the creation of bitcoin futures traded on a regulated derivatives exchange, with the many expected benefits that this brings, including transparency, price discovery, deep Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and centralized clearing."
Tyler Winklevoss, CEO of Gemini, added: "Gemini's key concerns in the cryptocurrency ecosystem have always been security, compliance, and regulatory oversight. By working with the team at CBOE, we are helping to make bitcoin and other cryptocurrencies increasingly accessible to both retail and institutional investors."
Chicago-based CBOE Holdings, the largest US options exchange, today announced that it has secured a multi-year exclusive license from Gemini Trust, the bitcoin exchange created by Tyler and Cameron Winklevoss.
The London Summit 2017 is coming, get involved!
The deal allows CBOE to use Gemini's market data, including its daily bitcoin auction values, to list and trade bitcoin derivatives products, with other digital currency contracts expected to follow.
Pending regulatory approval by the CFTC, the firm plans to launch cash-settled Bitcoin futures by the end of this year or early 2018. The deal also gives CBOE additional rights to roll out further cryptocurrency derivatives based on Gemini market data, and to distribute its market data over the exchange’s feeds.
Should the company secure the authorities’ permission to operate as a regulated venue for derivative contracts settling in digital currencies, it will open the market up to a much larger customer base who are currently unable to participate in the Bitcoin market due to compliance restrictions.
While a notable milestone, the move comes a few weeks after the CFTC granted blockchain startup LedgerX its official registration as a derivatives clearing organization (DCO).
As for the Gemini's creators, the twins are early investors in Bitcoin and have been highly bullish on its future value. They proposed an exchange traded fund (ETF) that would track Bitcoin prices, allowing investors to gain exposure to bitcoin on a fully regulated venue. However, the US Securities and Exchange Commission (SEC) denied their application earlier this year.
Ed Tilly, CBOE Holdings CEO, commented: "CBOE is not only a home to options, derivatives and the VIX but also ETF innovations and foreign exchange. This makes us the natural choice for the development and trading of bitcoin futures. We very much look forward to responding to the growing interest in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term through the creation of bitcoin futures traded on a regulated derivatives exchange, with the many expected benefits that this brings, including transparency, price discovery, deep Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and centralized clearing."
Tyler Winklevoss, CEO of Gemini, added: "Gemini's key concerns in the cryptocurrency ecosystem have always been security, compliance, and regulatory oversight. By working with the team at CBOE, we are helping to make bitcoin and other cryptocurrencies increasingly accessible to both retail and institutional investors."