SGX Seeks US Approval for Bitcoin, Ether Perpetual Futures
Singapore Exchange Ltd., a leading financial exchange, is expanding its presence in the US market by seeking to offer Bitcoin and Ether perpetual futures to institutional investors. The move comes after SGX filed an application with the Commodity Futures Trading Commission (CFTC) last month.
Perpetual futures allow investors to use leverage to bet on the direction of crypto prices without expiration dates. Unlike standard futures, they do not expire and are popular among traders for their flexibility.
SGX's products differ from those offered by crypto exchanges in several key ways. They trade 22.5 hours a day, five days a week, and require members to post 35% margin. Collateral is posted in fiat currency rather than crypto, and the contracts do not use auto-deleveraging (ADL) mechanism.
According to KC Lam, SGX's head of crypto derivatives, the exchange is targeting institutions, accredited investors, and professional investors who are not typically active on weekends. The US market has seen significant institutional participation in crypto, including futures and exchange-traded funds, making it a natural choice for SGX to expand its presence.