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Cboe Announces Expanded Collaboration with FTSE Russell to Drive Innovation in Digital Asset Derivatives

CHICAGO, June 11, 2024 /PRNewswire/ — Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading derivatives and securities exchange network, today announced it is expanding its collaboration with FTSE Russell, a leading global index provider, to drive product innovation in the digital assets space. This new initiative builds on Cboe and FTSE Russell’s longstanding relationship and will leverage their combined expertise to develop new derivatives products, potentially beginning with cash-settled index options tied to the FTSE Bitcoin Index and the FTSE Ethereum Index.

The collaboration underscores the companies’ shared commitment to growing the digital assets space and expanding investor access to the asset class. Cboe’s plans to list cash-settled index options on FTSE’s indices, subject to regulatory approvals, would help meet growing investor demand for exchange-traded derivatives to gain and manage crypto exposures in a trusted, transparent and U.S.-regulated trading environment.

“For many years, Cboe and FTSE Russell have worked together to offer index options based on FTSE Russell indices, which have grown into some of the world’s most actively traded products,” said Catherine Clay, Global Head of Derivatives at Cboe. “Our expanded relationship today mirrors that successful model of collaboration, combining Cboe’s unrivalled derivatives expertise with FTSE’s world-class indexing capabilities to potentially bring new solutions to the digital assets space. Derivatives has long been an area where Cboe excels, and now we are strategically expanding our expertise into the digital assets space. As these two asset classes converge, we look forward to driving continued innovation and our relationship with FTSE Russell will be key to this strategy.”

The FTSE Bitcoin Index and FTSE Ethereum Index are part of the FTSE Digital Asset Indices Series, which is developed in partnership with Digital Asset Research (DAR). These indices are designed to capture the performance of bitcoin and ether, as determined by the FTSE DAR Reference Price, and provide institutional-quality, liquidity-screened exposure to the digital asset market.

Talking about the expanded collaboration, Fiona Bassett, CEO of FTSE Russell, said: “We are delighted to continue working alongside Cboe Global Markets, realizing our mutual commitment to enable new asset innovation in financial markets. Our indices are used by some of the largest crypto asset managers in the world for their best-in-class data and processes built to manage regulatory and trading risk – critical differentiators for the data in this asset class.”

Cboe’s Broader Digital Assets Franchise

Cboe’s expanded collaboration with FTSE Russell follows the recent realignment of its digital assets business – a move that will consolidate all Cboe U.S. futures products, including digital asset futures, onto one exchange, subject to regulatory review, powered by Cboe’s broader global derivatives franchise and technology platform.

Furthermore, the collaboration is expected to introduce new products that will complement Cboe’s existing digital assets initiatives. These currently include the listing and trading of cash-settled bitcoin and ether margin futures, along with spot bitcoin ETFs, where Cboe BZX Equities Exchange lists six out of the 11 ETFs listed domestically. Additionally, Cboe submitted five of the eight recently SEC-approved rule filings to list ETFs tied to the price of ether.

“Our plans to develop bitcoin and ether index options come at an exciting time as more investors of all types enter the crypto markets and are increasingly seeking exchange-listed derivatives to manage their crypto exposures,” said Rob Hocking, Head of Product Innovation at Cboe. “Many of our customers are already trading Cboe-listed digital asset products, whether margin futures or ETFs, tied to bitcoin and ether. The launch of cash-settled index options will be additive – resulting in a more comprehensive product suite and helping to foster greater liquidity and hedging opportunities in these markets. We believe that derivatives will drive the next phase of the digital asset market’s maturation, and we’re excited about the potential benefits that cash-settled index options can bring to the space.” 

Cboe intends to share more details about its plans for cash-settled index options on the FTSE Bitcoin Index and the FTSE Ethereum Index potentially later this year.

About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), the world’s leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.

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Cboe®, CFE®, VIX®, and Cboe Global Markets® are registered trademarks and Cboe Futures ExchangeSM is a service mark of Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners. 

Trading in futures and options on futures is not suitable for all market participants and involves the risk of loss, which can be substantial and can exceed the amount of money deposited for a futures or options on futures position. You should, therefore, carefully consider whether trading in futures and options on futures is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding the risks associated with trading futures and options on futures and with trading security futures, see respectively the Risk Disclosure Statement Referenced in CFTC Letter 16-82 and the Risk Disclosure Statement for Security Futures Contracts. Certain risks associated with options, futures, and options on futures and certain disclosures relating to information provided regarding these products are also highlighted at https://www.cboe.com/us_disclaimers

Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Investors should undertake their own due diligence regarding their securities, futures and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein. Nothing in this announcement should be considered a solicitation to buy or an offer to sell any securities or futures in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction. Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation. 

Cboe Global Markets, Inc. and its affiliates, to the maximum extent permitted by applicable law, make no warranty, expressed or implied, including, without limitation, any warranties as of merchantability, fitness for a particular purpose, accuracy, completeness or timeliness, the results to be obtained by  recipients of the products and services described herein, or as to the ability of the FTSE Russell or Digital Asset Research indices to track the performance of the general market or any segment thereof, and shall not in any way be liable for any inaccuracies or errors. Cboe Global Markets, Inc. and its affiliates have not calculated, composed or determined the constituents or weightings of the securities that comprise the FTSE Digital Asset Indices Series indices and shall not in any way be liable for any inaccuracies or errors.

Cautionary Statements Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel; increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our growth and strategic acquisitions or alliances effectively;  our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty, investment, and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; and risks relating to digital assets, including winding down the Cboe Digital spot crypto market, operating a digital assets futures clearinghouse, cybercrime, changes in digital asset regulation, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings made from time to time with the SEC.

We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

SOURCE Cboe Global Markets, Inc.

Originally published at https://www.prnewswire.com/news-releases/cboe-announces-expanded-collaboration-with-ftse-russell-to-drive-innovation-in-digital-asset-derivatives-302169124.html
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