Cboe

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Chicago Board Options Exchange
Cboe Global Markets.jpg
Founded Apr. 26, 1973
Headquarters 400 S. LaSalle Street, Chicago, IL 60605
Key People Edward T. Tilly, CEO
Products Cboe Futures Exchange; options on equities, equity indexes, ETFs
Twitter @CBOE
StockTwits Cboe
LinkedIn Profile
Facebook Cboe
Website Cboe Homepage
Releases Company News

The Chicago Board Options Exchange, or Cboe, was the first U.S. options exchange to offer standardized, listed options. It was also the first exchange in the traditional financial space to offer bitcoin futures, using the symbol XBT.

Bitcoin futures

In summer 2017 Cboe agreed with Cameron and Tyler Winklevoss (aka "the Winklevoss twins") for Cboe's futures subsidiary, Cboe Futures Exchange (CFE),wer to use bitcoin market data generated by their virtual-currency exchange Gemini for final cash settlements in its upcoming bitcoin futures (XBT).[1] With each contract representing the value of one bitcoin, Cboe launched the first bitcoin futures on December 10, 2017, trading a reported 4,127 contracts in their first day of trading, with nearly 20 trading firms participating. Cboe waived transaction fees on XBT throughout that month.[2][3]

Cboe announced on March 14, 2019 that CFE would not list new XBT futures months beyond June 2019, and that it would consider its next steps for supporting digital asset derivatives trading.[4] On the day of the announcement, CFE traded 2,089 contracts.[5]

Bitcoin ETPs

On January 23, 2019, the United States Securities and Exchange Commission (SEC) announced that Cboe had withdrawn its proposal for a rule change that would have allowed it to list and trade shares of a bitcoin ETF - specifically, the VanEck SolidX Bitcoin Trust. Cboe said in an email statement that the plan was related to the effects of the U.S. government shutdown occurring at the time. Cboe also said that the company planned on refiling a similar proposal at a later date with the SEC.[6][7]

A week later, on January 31, VanEck digital asset strategy director Gabor Gurbacs announced that the firm, as well as Cboe and SolidX, had re-filed the request with the SEC.[8]

In March 2019, the SEC postponed making a decision on the request, delaying it until May 21. The decision was further delayed in May, and a new deadline of October 18, 2019, was set.

In early September 2019, VanEck began offering a broker-traded fund related to bitcoin that would not be available to the public and could only be traded over-the-counter. The fund was called the VanEck SolidX Bitcoin Trust 144A Shares, and as its name implied, was traded under a Rule 144A exemption with the SEC.

On September 17, 2019, the SEC published a statement saying that the proposed rule change had been withdrawn - a month before the deadline for the approval of the bitcoin ETF.[9][10][11][12]

In December 2020, Cboe announced that it had entered a partnership with Coinroutes, a digital asset market data firm, allowing Cboe to make use of CoinRoutes’ proprietary RealPrice data feed to create digital asset index products, as well as other, similar products and services.[13]

In its at least fourth attempt to list a bitcoin ETF, Cboe submitted a proposal to the SEC to trade shares in a VanEck Bitcoin Trust on March 1, 2021. Ostensibly, Cboe was optimistic that the SEC would view the bitcoin marketplace as operating better than when Cboe withdrew a proposed bitcoin ETF in January 2021. It was the first formal ETF proposal to the SEC after Chairman Jay Clayton stepped down from the agency in December 2020.[14]

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References