The United States derivatives watchdog, Commodity Futures Trading Commission (CFTC), recently disclosed another approval of a derivatives operator called Bitnomial. The derivatives company is reportedly based in Chicago, US.
Latest exchange to list Bitcoin derivatives products.
Bitnomial was greenlighted by the regulator on Monday, following the order it issued that confirmed the company as a designated contract market or DCM. This refers to exchanges that can offer options contracts on different commodities, including the trading of futures.
Upon this approval, the crypto derivatives company is set to list regulated futures for Bitcoin. Bitnomial would be offering futures on Bitcoin, which will be physically delivered, including the options to different categories of traders following its DCM status, as per the report.
The regulator’s approval came after a close review of the application filed by the crypto derivatives company. The CFTC said that the company showed readiness to operate in compliance with its DCMs regulation, including the Commodity Exchange Act.
Meanwhile, the grant to issue these products sets Bitnomial as the first crypto derivatives startup to achieve this. The approval was effective as of Monday; hence, the products are likely to be available on the exchange.
The road to crypto derivatives market
Established in 2014, the crypto derivatives company initially filed the now-approved application two years after its launch. The aim was to become a platform that could enable crypto derivatives that can be delivered.
Two years after the company applied for the Bitcoin products, they raised funds from prominent Industry players, including RRE Ventures, Coinbase Ventures, and others. This was conducted in a Series A funding. Bitnomial now adds to the list of available derivatives companies to be approved by the regulator.
So far, the United States derivatives watchdog has only greenlighted about five trading companies to offer derivatives products on Bitcoin, excluding Bitnomial. Other firms approved by the regulator include Bakkt, the Chicago Mercantile Exchange, ErisX, Chicago Board Options Exchange, and Ledgerx.