Derivates Exchange CBOE said it is planning to introduce “continuous futures” for Bitcoin and ether (Eth) on November 10, pending regulatory approval. The products are designed to look like eternal futures contracts that are popular on offshore exchanges, but with changes that fit US regulatory structures.
Unlike traditional futures that expire monthly or quarterly, Cboe’s new contracts will last up to 10 years. The long horizon reduces the need for the traders to constantly “roll” their positions to new contracts, a costly and time -consuming process. Instead, futures are adjusted daily at spot prices through a transparent financing speed mechanism.
In practice, this means that a trader who seeks to maintain long -term exposure to Bitcoin could buy a continuous future contract and keep it for years without rebalans. At the same time, the contracts are cash-moistent, so no bitcoin or ether ever changes hands-settlement is in dollars, with payments tied to Crypto’s spot price.
“Futures in eternal style have had a strong adoption in offshore markets,” said Catherine Clay, CBO’s head of derivatives. “We expect continuous futures to appeal to not only institutional market participants and existing CFE customers, but also to a growing segment of retailers seeking access to cryptoderivatives.”
CBOES Futures will clear through CBOE CLEAR US, a derivators clearinghouse monitored by Commodity Futures Trading Commission (CFTC)said the business.
