Cboe Global Markets plans to close its cryptocurrency exchange in the third quarter of 2024. Cash-settled Bitcoin and ether futures contracts will move from the Cboe Digital Exchange to the Cboe Futures Exchange in the first half of 2025. According to the press release, John Palmer, the President of Cboe Digital, will head the US Derivatives Market Development.

Consolidating Crypto Futures

Cboe aims to consolidate its US futures products into one exchange to enhance efficiency for clients globally. By leveraging its global derivatives franchise, the options exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term plans to support exchange-traded digital asset derivatives markets.

Fred Tomczyk, the Chief Executive Officer of Cboe Global Markets, mentioned: "Refocusing our digital asset business enables us to refine our strategy, leveraging our core strengths in derivatives, technology excellence, and product innovation to help maximize opportunities for our business and deliver efficiencies for Cboe and our clients."

"We believe these changes enable greater optimization and strategic alignment for our business across geographies and asset classes, further supporting our long-term growth strategy."

NEWS UPDATE: Cboe Global Markets Realigns Digital Asset Business Leveraging Strength and Expertise in Derivatives and Clearing. Read the press release: https://t.co/8oyCqjciYZ pic.twitter.com/9N0O8LYchu

— Cboe (@CBOE) April 25, 2024

Cboe Aligns Clearing Business

Notably, Cboe will maintain ownership and operation of Cboe Clear Digital, its clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term arm, and align it with Cboe Clear Europe under unified leadership. The exchange mentioned that this alignment will better serve clients globally.

According to Cboe, the closure of the crypto exchange will not have a significant impact on its net revenue in 2024. The company anticipates to save money on expenses from the closure. Further details about these changes are expected during the first-quarter 2024 earnings call on May 3, 2024.

Last year, Cboe Digital launched margin futures for Bitcoin and ether. Backed by a consortium of 11 firms, including notable names like B2C2 and Cumberland DRW. Cboe Digital noted that it was enhancing crypto trading by combining spot and leveraged derivatives trading on a unified platform.

Cboe Digital became one of the first US-regulated crypto exchanges and clearinghouses after integrating spot and leveraged derivatives trading. The addition of physically delivered products further diversified its offerings, catering to the evolving needs of crypto traders.