Revealed: Initial Margin Limits for Bakkt’s Bitcoin Futures Contracts
- The margin requirements for daily and monthly futures contracts will be $3,900.
- Even though Bakkt’s warehouse has been accepting deposits since 6 September, its Bitcoin futures contracts will be launched on 23 September.
Kelly Loeffler/CoinDesk
The Intercontinental Exchange (ICE) has revealed the initial deposits that Bakkt customers will have to make in order use its Bitcoin (BTC) futures trading contracts.
According to the notice from ICE, the initial margin requirements, the amount of collateral that needs to be pledged in order to open a position, for daily and monthly futures contracts will be $3,900, while the speculative initial requirement for both contracts will be $4,290.
Bakkt’s inter-month add-ons for the monthly and daily futures contracts will differ, just like the initial hedge and speculation rates differ. The hedge rate for the monthly and daily futures contracts will be between $400-$1,000, while the speculative rate will be between $440-$1,100.
Bakkt’s warehouse, which will hold its customer’s Bitcoin’s, began accepting deposits earlier this month. On Monday the company also announced that the Bitcoin deposits at its warehouse is protected by a $125 million insurance policy. The ICE notice also revealed that the launch has been scheduled for later this month:
“ICE Futures U.S. will begin to trade and ICE Clear US will begin to clear the BakktTM Bitcoin (USD) Monthly and Daily Futures contracts on Monday, September 23, 2019. As such, the following tentative margin requirements will be effective with the opening of business on September 23, 2019 and thereafter.”
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Gemini founders Tyler Winklevoss (L) and Cameron Winklevoss (R) onstage during TechCrunch Disrupt, New York, May 6, 2015. Noam Galai/Getty Images for TechCrunch
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