Cboe Global Markets is set to update its digital asset business, focusing on derivatives, technology, product innovation and operational efficiency.
The company expects to transition and fully integrate its digital assets derivatives into its Global Derivatives and Clearing business, with the goal of improving efficiency and bolstering the exchange-traded digital asset derivatives market. John Palmer, president of Cboe Digital, will become head of US derivatives market development.
Cboe Digital Spot Market will be wound down in Q3 2024, the company confirmed. This is not expected to have a material impact on the exchange’s 2024 net revenue, it commented, and will provide significant expense savings in 2024 and beyond.
Cash-settled bitcoin and ether futures contracts available on the Cboe Digital Exchange are expected to transition to the Cboe Futures Exchange (CFE) in the first half of 2025. This will consolidate the company’s futures products onto a single exchange, Cboe explained, improving efficiency globally and strengthening the support available for its digital asset derivatives.
Additionally, Cboe Clear Digital will be aligned with Cboe Clear Europe and run under
unified leadership. Cboe Clear Europe president Vikesh Patel will now oversee US clearing in addition to his current role.
The decision has been made as part of Cboe’s strategic review, with consideration to the lack of regulatory clarity in the digital space.
David Howson, global president of Cboe, said: “Bringing digital asset derivatives and clearing into our existing business lines enables us to leverage the full breadth of our global derivatives team and unlock the full value of Cboe to our clients around the world. We expect to continue to see greater demand for exchange-traded derivatives to help manage crypto exposures, hedge risk and enhance capital and operational efficiencies.”
Fred Tomczyk, CEO of Cboe Global Markets, commented: “Refocusing our digital asset business enables us to refine our strategy, leveraging our core strengths in derivatives, technology and product innovation to help maximise opportunities for our business and deliver efficiencies for Cboe and our clients. We believe these changes enable greater optimisation and strategic alignment for our business across geographies and asset classes, further supporting our long-term growth strategy.”
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