Bitnomial | Crypto

The launch expands Aptos’ reach in CFTC-regulated derivatives markets and adds to Bitnomial’s altcoin futures offerings as investor interest in altcoins grows. Chicago-based crypto exchange Bitnomial has launched monthly futures contracts tied to the Layer-1 blockchain Aptos’ native token, marking the first APT derivatives product regulated under the US oversight. The contracts will be available to institutional clients through Bitnomial’s clearing members, with retail access expected in the coming weeks via the company’s Botanical platform. According to an announcement shared with Cointelegraph, the contracts feature monthly expirations and settle in either US dollars or Aptos’ native APT (APT) token, depending on the position. Monthly futures are standardized derivatives that allow traders to gain price exposure over a defined period without holding the underlying asset. Read more

The no-action letter comes amid growing acceptance by US regulators of prediction-style markets and event contracts during an election year. The Commodity Futures Trading Commission (CFTC), a US financial regulator, issued a no-action letter to crypto derivatives exchange Bitnomial on Thursday, clearing the way for the exchange to offer event contracts and prediction markets. The CFTC letter alleviates Bitnomial from the strict reporting requirements for asset swaps under current US rules, a hurdle that is impractical for fast-moving platforms like prediction markets, where tens of thousands of these swaps may occur in a day. Bitnomial must still provide transparent consumer-facing data on its website, including timestamps and sales data for contract markets, and provide relevant data to the CFTC when requested, according to the terms of the letter. All positions must also be collateralized, meaning they cannot be leveraged and must be backed 1:1 to ensure liquidity and prevent cascading liquidations that thr...

The US regulator's green light lets Bitnomial’s clearinghouse support prediction markets linked to crypto and economic events, expanding its regulated product and clearing offerings. Bitnomial Clearinghouse LLC received approval from the US Commodity Futures Trading Commission (CFTC) to clear fully collateralized swaps, enabling its parent company, Bitnomial, to launch prediction markets and offer clearing services to other platforms. According to Friday’s announcement, Bitnomial’s prediction market will cover crypto and economic events, alongside its existing Bitcoin (BTC) and crypto derivatives products. The contracts are designed to allow traders to take positions on outcomes, such as token price levels and macroeconomic data. The approval expands the umbrella of the trading products offered by Bitnomial. Based in Chicago, the company’s exchange and clearing arms offer perpetuals, futures, options contracts and leveraged spot trading. The company’s clearinghouse also supports crypto-based margin and settle...