Coinbase Derivatives, formerly known as FairX, has made a request to the U.S. Commodity Futures Trading Commission (CFTC) to list a regulated futures contract for Shiba Inu (SHIB). The fund, called 1k Shib Futures (SHB), will operate under a self-certification model and is set to be available for trading on July 15, 2024.
In a letter addressed to Christopher J. Kirkpatrick, the secretary of the U.S. CFTC, Coinbase Derivatives provided detailed information about the SHB Futures Contract. It will be a monthly cash-settled and margined contract, with a contract size of 10 million SHIB. The minimum tick size and value will be $0.00001 per token and $0.10 per contract, respectively. The contract’s position limit will be set at 30,000 SHB Futures, which is equivalent to 300 billion SHIB tokens.
The final settlement price of expiring contracts will be based on the Market Vector Coinbase 1k Shib benchmark reference rate at 4:00 PM London time. The product’s index value will be determined by a two-hour settlement window, divided into 40 three-minute intervals, during which Market Vector will calculate a volume-weighted median price using data from constituent exchanges.
Trading hours for the Shib contract will be from 5:00 to 4:00 PM (CT), Sunday through Friday, with a trading break scheduled from 04:00 to 05:00 PM (CT) on Monday through Thursday.
In addition to the SHB Futures Contracts, Coinbase Derivatives has also submitted certification documents for futures contracts of four other altcoins: Stellar Lumen (XLM), Polkadot (DOT), Chainlink (LINK), and Avalanche (AVAX). These contracts are also expected to launch on July 15 and will be subject to Coinbase Derivatives’ risk control measures, including a daily price limit.
It’s important to note that the information in this article is for informational purposes only and should not be considered financial advice. The views expressed are solely those of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, as The Crypto Basic is not responsible for any financial losses incurred.
