Thanks for posting this announcement.
I've been into the stock market for years now, and options, futures, and other derivatives have always made my head spin in circles. Bakkt already offers options contracts on bitcoin if I'm reading this right, and I'm not sure what this new product is exactly--and because my head is already starting to swivel I'm not going to attempt to even figure it out.
This does sound like a good thing for those using Bakkt. The more styles of options they offer, the more choices traders have, and presumably that would lead to higher trading volume and greater utilization of Bakkt in general. Hopefully all of that can translate into something good for bitcoin, but I've probably got my rose-colored glasses on.
Do they allow shorting of bitcoin? I asked that question a while back in another thread and I didn't get an answer. Just curious.
Topic: Bakkt bitcoin options on futures to launch December 9: an industry first (Read 112 times)
October 27, 2019, 08:17:04 AM
October 27, 2019, 07:36:34 AM
Bakkt bitcoin options on futures to launch December 9: an industry first
https://medium.com/bakkt-blog/bakkt-bitcoin-options-on-futures-to-launch-december-9-an-industry-first-8fb2bd686abb
Ok it looks like Bakkt has come up with something new? in the market this December. Some of them I'm not familiar with, I guess I really need to do some investigations here. I do hope that they can continue to influence the market in a positive way though and because the catalyst that everyone is hoping for.
Quote
On December 9, Bakkt will launch the first regulated options contract for bitcoin futures. We’re committed to bringing trust and utility to digital assets and the options contract is an example of the many products we’re developing for regulated markets. The Bakkt Bitcoin Options contract will be based on the benchmark Bakkt Monthly Bitcoin Futures contract and represents another important step in developing this asset class for institutional investors, their customers and investors.
Key features of the Bakkt Bitcoin Options contract include:
· Capital efficiency: Margined contracts, and cross-margining with the underlying futures contract
· Cash or physical settlement: Options will settle into Bakkt’s monthly bitcoin futures contract with time to roll, close out positions or take physical delivery
· European style option: This contract design avoids early exercise and reduces operational burdens
· Attractive fees: $1.25 per options contract (1 contract = 1 bitcoin) starting in January 2020, following the fee waiver in December 2019
· Broad distribution and liquidity: ICE Futures U.S. markets are accessible globally and have dedicated market makers to support liquidity
· Instant Messaging: Collaborate with other market participants using ICE Chat, which can be tailored to support your compliance requirements
· Block trades: Access more trading opportunities as block trades by leveraging ICE Block
· Options analytics: Use ICE Option Analytics to support options valuation, analysis and risk management
Key features of the Bakkt Bitcoin Options contract include:
· Capital efficiency: Margined contracts, and cross-margining with the underlying futures contract
· Cash or physical settlement: Options will settle into Bakkt’s monthly bitcoin futures contract with time to roll, close out positions or take physical delivery
· European style option: This contract design avoids early exercise and reduces operational burdens
· Attractive fees: $1.25 per options contract (1 contract = 1 bitcoin) starting in January 2020, following the fee waiver in December 2019
· Broad distribution and liquidity: ICE Futures U.S. markets are accessible globally and have dedicated market makers to support liquidity
· Instant Messaging: Collaborate with other market participants using ICE Chat, which can be tailored to support your compliance requirements
· Block trades: Access more trading opportunities as block trades by leveraging ICE Block
· Options analytics: Use ICE Option Analytics to support options valuation, analysis and risk management
https://medium.com/bakkt-blog/bakkt-bitcoin-options-on-futures-to-launch-december-9-an-industry-first-8fb2bd686abb
Ok it looks like Bakkt has come up with something new? in the market this December. Some of them I'm not familiar with, I guess I really need to do some investigations here. I do hope that they can continue to influence the market in a positive way though and because the catalyst that everyone is hoping for.
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