Following a February approval of the CFTC that granted Cantor Clearinghouse as a registered Derivatives Clearing Organization (DCO), and CantorExchange as Designated Contract Market (DCM), Cantor Fitzgerald is set to launch a new US based binary options trading exchange. CantorExchange and Cantor Clearinghouse are operating as subsidiaries of Cantor’s. Trading will be conducted through CantorExchange’s electronic trading platform for matching buyers and sellers, with trades settled through Cantor Clearinghouse. CantorExchange is being led by CEO and Chairman, Howard W. Lutnick who is also Chairman and Chief Executive Officer of Cantor Fitzgerald, L.P., and Chairman and Chief Executive Officer of BGC Partners, Inc.
According to CantorExchange, the new platform is registered to offer trading in spot FX binary flex options contracts (FXSI) and additional fully margined binary options with risk profiles similar to FXSI contracts. We reached out to Cantor for more information on when the official launch will take place, who is the target audience and why they are entering the market, but as of publishing time have yet to to receive responses to our inquiries.
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From data available on the website, CantorExchange appears to be a NADEX competitor as it will be offering similar type binary options with minimum account size of $100 which indicates a target audience of retail traders. Currently, CantorExchange’s trading platform is limited to an iPad interface where users can download the live or check out the practice system (although it isn’t available in all global regions). As we learn more about this venture, Forex Magnatetes will be providing updates.