Cboe Global Markets has expanded its collaboration with FTSE Russell to drive product innovation in the digital assets space.
The new development builds on an existing relationship between the two firms, leveraging their combined expertise to develop new derivatives products. This could potentially start with cash-settled index options tied to the FTSE Bitcoin Index and the FTSE Ethereum Index.
As part of the collaboration, Cboe plans to list cash-settled index options on FTSE’s indices – subject to regulatory approvals – which will target increased investor demand for exchange-traded derivatives to manage crypto exposure in a US-regulated trading environment.
“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,” said Catherine Clay, global head of derivatives at Cboe.
“[…] 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, developed in partnership with Digital Asset Research (DAR).
These indices capture the performance of bitcoin and ether, as determined by the FTSE DAR Reference Price, offering exposure to the digital asset market.
“We are delighted to continue working alongside Cboe Global Markets, realising our mutual commitment to enable new asset innovation in financial markets,” said Fiona Bassett, chief executive of FTSE Russell.
“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 added in a statement that it plans to share more details about its intentions for cash-settled index options on the FTSE Bitcoin Index and the FTSE Ethereum Index potentially later this year.