Exchange CBOE derivatives declared that he planned to introduce “continuous future” for bitcoin and ether (Eth) On November 10, pending regulatory authorization. The products are designed to resemble popular perpetual term contracts on offshore exchanges, but with modifications to adapt to American regulatory structures.
Unlike traditional term contracts, which expire monthly or quarterly, new CBOE contracts will last up to 10 years. This long horizon reduces the need for merchants to continuously “ride” their positions in new contracts, an expensive and long process. Instead, the term contracts will be adjusted daily compared to cash prices thanks to a transparent financing rate mechanism.
In practice, this means that a merchant seeking to maintain long -term exposure to Bitcoin could buy a continuous contract and maintain it for years without rebalancing. At the same time, the contracts are in money, so no bitcoin or ether changes hands – the regulations are in dollars, with payments linked to the cash price of cryptography.
“The future of perpetual style have obtained a strong adoption on the offshore markets,” said Catherine Clay, chief of CBOE derivatives. “We expect continuous term contracts not only the participants in the institutional market and existing CFE customers, but also to an increasing segment of retail traders in search of access to cryptography derivatives.”
CBOE’s assets are doing through CBOE getting rid of derivatives, a service cage house supervised by the Commodity Futures Trading Commission (CFTC)said the company.
