SEC Allows Options Trading for Investment Products Containing Multiple Cryptocurrencies

The U.S. Securities and Exchange Commission (SEC) announced that it will immediately implement a rule change allowing options for investment products containing multiple cryptocurrencies to be traded on the Chicago Board Options Exchange (Cboe) subsidiary EDGX. EDGX is an exchange operated by the Cboe group, where options are derivative products that give the right to buy or sell an underlying asset. Previously, EDGX regulations only permitted the listing of options for single digital asset trusts, but this change allows trusts containing multiple digital assets to list options as well. The digital assets included must have an average market capitalization of over $700,000,000 in the last 12 months, and derivatives based on those assets must be traded in markets that share market surveillance information with EDGX. The requirements must be maintained even after listing, and EDGX will check the market capitalization criteria monthly and review new trading restrictions if the requirements are not met. This change applies the standards permitted for Cboe options to EDGX, as the SEC approved the relevant standards for Cboe options last April. The new regulations will take effect from October 6, as submitted by EDGX.