The U.S. Commodity Futures Trading Commission (CFTC) has approved a new bitcoin derivatives trading platform. Bitnomial Exchange will list margined and physically delivered bitcoin futures and options. Besides Bitnomial, the CFTC has only approved a handful of other platforms to offer bitcoin derivatives trading, such as CME, Cboe, and Bakkt.

The CFTC announced yesterday that it has issued an order granting Chicago-based Bitnomial Exchange status as a designated contract market (DCM), effective on the same day. The U.S. top derivatives regulator explained that after reviewing Bitnomial’s application and associated exhibits:

“The CFTC determined that Bitnomial Exchange demonstrated its ability to comply with the requirements of the CEA [Commodity Exchange Act] and the CFTC’s regulations applicable to DCMs.”

According to the CFTC, designated contract markets “are exchanges that may list for trading futures or option contracts based on all types of commodities and that may allow access to their facilities by all types of traders, including retail customers.”

With Monday’s approval, Bitnomial Exchange must comply with all provisions of the Commodity Exchange Act, the CFTC’s requirements, and representations it submitted as part of its application for designation as a contract market.


Bitnomial to List Margined and Physically Delivered Bitcoin Futures and Options

Bitnomial is a bitcoin derivatives exchange founded in 2014. The company filed an application with the CFTC to operate an exchange for deliverable cryptocurrency derivatives in 2016. In 2018, it raised Series A funding from investors, such as Jump Capital, Coinbase Ventures, Digital Currency Group, and RRE Ventures.

According to the Bitnomial, the CFTC has approved its exchange “for U.S. bitcoin futures and options trading with margin and physical delivery.” Three bitcoin derivatives products are listed on Bitnomial’s website: Bitcoin U.S. Dollar Futures, Deci Bitcoin U.S. Dollar Futures, and Bitcoin U.S. Dollar Options. The company added:

Bitnomial will list margined and physically delivered bitcoin futures and options, the first and only startup exchange to achieve these capabilities.

The CFTC has to date only approved a handful of trading platforms — CME, Cboe, Bakkt, Erisx, and Ledgerx — to offer bitcoin derivatives products. Cboe stopped offering bitcoin futures early last year.