Bitnomial, a cryptocurrency exchange founded in 2015, has received approval from the U.S. Commodity Futures Trading Commission (CFTC to operate as a designated contracts market.
This means the cryptocurrency exchange can now offer bitcoin futures and options contracts. Bitnomial shared the news via a press release, in which it detailed it will list margined and physically delivered derivatives. Per the exchange, it became the “first and only startup exchange” to receive approval to offer these products in the U.S.
The CFTC conducted an onsite technical evaluation of Bitnomial’s operations before granting it approval. In the release, Bitnomial wrote:
The approval allows Bitnomial to tackle a confluence of generational shifts in financial markets: First, a new generation of customers are emerging as savvy with trading, technology and delivery. Second, innovative new unregulated derivatives are booming with daily volumes topping $45 [billion] but may be illegal for many U.S. traders.
Bitnomial is now setting up user acceptance testing, expected to start on April 27. Luke Hoersten, founder and CEO of the firm noted that it will launch quarterly futures, micro futures and options. Contracts will trade on 37% margin, and will be settled on-chain rather than book entry.
The approval will see Bitnomial compete with the likes of the CME, Cboe, Bakkt, ErisX, and LedgerX on offering cryptocurrency derivatives. Bitnomial, it’s worth noting, raised $7.5 million from investors last December, according to a filing with the Securities and Exchange commission (SEC).
Featured image via Unsplash.