Digital asset derivatives exchange company Bitnomial has announced the launch of Bitnomial Clearinghouse (BNCH), “a clearinghouse designed from the ground up to be digital asset-native” that is registered with the Commodity Futures Trading Commission (CFTC). Once operational, the firm will become the fourth US clearinghouse that can clear three types of derivatives contracts – margined, physically settled, as well as cash settled.
Bitnomial already operates other exchanges, clearinghouses, and brokerage subsidiaries, all regulated by the CFTC. The latest move represents the firm’s bid to get a share of the global crypto derivatives market, which a press release claims has a US$100 billion average daily volume, 95 per cent of which currently coming from outside of the US.
Bitnomial Exchange president Michael Dunn says, “The motivation for getting approval and launching a new clearinghouse was driven by necessity. Traditional clearing infrastructure has not met the evolving needs of the digital asset market. Those looking to effectively hedge their digital asset portfolio and liquidity providers currently face high costs because spot positions are not recognised in legacy clearing systems.” To eliminate these inefficiencies, BNCH plans to accept digital asset collateral to margin futures and options trading.
BNCH will launch on 30 January with Bitnomial Exchange’s current core offerings. All legacy cleared products will expire by 29 January.