The United States Commodity Futures Trading Commission (CFTC) has granted Bitnomial Exchange the approval to operate a Bitcoin futures and options exchange in the country as a designated contracts market (DCM).
With the approval received, Bitnomial can now offer options contracts in bitcoin to investors in the US. After proper scrutiny of applications and included exhibits, the CTFC affirmed that the Chicago-based exchange has expressed its ability in complying with the CEA and the CFTC regulations applicable to The designated contracts market (DCM).
The approval was given under section 5 of the Commodity Exchange Act (CEA) and the Commodity Future Trading Commission (CFTC) regulations 38.3 (a).
This comes with terms and conditions that require that Bitnomial is ready to trade and must agree with the CEA’s provision and the necessary directions of the CFTC, which may be re-examined for more cozy participation of the DCM. The exchange must also agree with all its representations and adoption to contribute to its well known and efficient contract market.
CME, Cboe, Bakkt, ErisX, and LedgerX offer bitcoin futures and options contracts to date. Bitnomial, unlike CME, is focused on physically settled contracts. This will help customers receive actual Bitcoin when contracts expire.
According to the report, Bitnomial has become the first and only startup exchange to receive approval to list margined and physically delivered Bitcoin futures and options in the United States.
The exchange will commerce User Acceptance Testing for trading and delivery on April 27, 2020. However, the signup phase has commenced for interested customers.
Speaking on the development, Bitnomial Founder and CEO, Luke Hoersten said:
We are building the Bitcoin Product Complex, a suite of interrelated financial products, starting with quarterly Bitcoin futures, micro futures, and options. Additionally, our products initially trade on 37% margin and are settled on-chain instead of book entry.