CBOE Holdings, one of the largest exchange groups in the world, recently announced a partnership with Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, that will allow it to use Gemini trading data to power bitcoin derivatives and indices.
The agreement, that still needs to be approved by the Commodity Futures Trading Commission (CFTC), will see Gemini provide CBOE data on bitcoin, ethereum, and other digital currencies. Set to launch in CBOE’s CFE futures exchange as early as the fourth quarter of 2017, or early next year, according to Reuters, it will support CBOE’s development of cash-settled futures.
Moreover, the agreement gives the exchange giant exclusive rights to use Gemini market data to create new indices for traders. If approved by the CFTC, as Business Insider puts it, it would bring more regulation and stability to the cryptocurrency ecosystem.
Notably back in March, as reported by CCN.com, the Winklevoss twins’ quest to launch the first-ever bitcoin ETF on the BATS exchange was rejected by the U.S. Securities and Exchange Commission (SEC), which cited a lack of regulations. Some of the SEC’s concerns might now fade away if the agreement with CBOE – which acquired the BATS exchange this year – is approved.
Gemini’s CEO, Tyler Winklevoss, clarified that Gemini’s key concerns in the cryptocurrency industry were, and had always been, security, regulatory oversight, and compliance. Commenting on the partnership with CBOE, he added that Gemini is “helping to make bitcoin and other cryptocurrencies increasingly accessible to both retail and institutional investors.”
In a press release CBOE Holdings’ Charmain and CEO Ed Tilly stated:
We very much look forward to responding to the growing interest in cryptocurrencies through the creation of bitcoin futures traded on a regulated derivatives exchange with the many expected benefits that this brings, including transparency, price discovery, deep liquidity and centralized clearing.
Bitcoin’s increasing value also captured the attention of other exchanges.
LedgerX, backed by Miami International Holdings, was recently granted a license as a derivatives clearing organization by the CFTC. Moreover, the CME Group, the world’s largest futures exchange, had already launched a pair of indexes to track bitcoin’s price last year.
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Last modified: May 21, 2020 9:38 AM UTC