Derivatives Exchange CBOE said he plans to introduce “continuous future” for Bitcoin and ether (Eth) On November 10, pending regulatory authorization. The products are designed to resemble the contracts of popular perpetual futures in exchanges on the high seas, but with modifications to adapt to the regulatory structures of the United States.
Unlike traditional futures, who expire monthly or quarterly, the new CBOE contracts will last up to 10 years. This long horizon reduces the need for merchants “to continually surround their positions in new contracts, an expensive process and that takes a long time. On the other hand, future will be adjusted daily against spot prices through a transparent financing rate mechanism.
In practice, that means that a merchant who seeks to maintain long -term exposure to Bitcoin could buy a continuous futures contract and keep it for years without rebalance. At the same time, the contracts are in cash, so no bitcoin or ether changes hands: the agreement is in dollars, with payments linked to Crypto’s spot price.
“Perpetual style futures have obtained a strong adoption in the markets on the high seas,” said Catherine Clay, head of CBOE derivatives. “We hope that continuous futures attract not only the participants of the institutional market and existing CFE clients, but also to a growing segment of retail merchants seeking access to cryptographic derivatives.”
CBOE futures will clear through CBOE Clear Us, a derivative cleaning house supervised by the Basic Products Future Trade Commission (CFTC)The company said.
