CFTC advisory subcommittee recommends tokenized margin collateral (Ledger Insights)
The Commodity Futures Trading Commission (CFTC) Global Markets Advisory Committee (GMAC), made up of industry participants, voted in favor (27-0) of three recommendations to adopt distributed ledger technology (DLT) and tokenized assets as collateral for margin. Committee members concluded that no changes to regulations, policies and procedures would be required. The proposals would need to be adopted by the full GMAC Committee and it’s up to the CFTC to decide whether it proceeds. [Read more at the CFTC]
CBOE to launch cash-settled bitcoin ETF options (Cboe)
Cboe Global Markets will launch cash-settled spot bitcoin (BTC) index options on December 2, 2024. Regulated by the U.S. Securities and Exchange Commission (SEC), they will be based on the Cboe Bitcoin U.S. ETF Index (CBTX), which tracks a basket of U.S.-listed spot BTC exchange-traded funds (ETFs). The options will be cash-settled, so that positions are closed in cash at expiration, removing the complexities of physical ETF delivery. Also, they will be exercisable only on the expiration date (“European style”) to eliminate early assignment risk. This follows the November 18 NASDAQ announcement of plans to list options on BlackRock’s BTC ETF, after the CFTC cleared the Options Clearing Corporation to oversee the market a few days earlier. [Read more at the Cboe]
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