Bitnomial Prime Brokerage Services (DCM/DCO/FCM)

Bitnomial operates a vertically-integrated U.S. regulated prime brokerage infrastructure for institutional digital asset derivatives trading, comprising three CFTC-registered entities: Exchange (DCM), Clearinghouse (DCO), and Clearing (FCM).

Designated Contract Market (DCM)

Bitnomial Exchange provides institutional-grade execution for digital asset derivatives with CFTC DCM registration (approved January 2020). The exchange offers leveraged spot trading, perpetual futures, traditional futures, options, and prediction markets—all on a single regulated platform. Key features include crypto-margined and crypto-settled contracts, the first CFTC-regulated perpetual futures contracts, and unified trading across multiple product types via the Botanical platform.

Derivatives Clearing Organization (DCO)

Bitnomial Clearinghouse serves as the first crypto-native DCO in the U.S. (approved February 2023), accepting BTC, ETH, and USD/stablecoins as margin collateral with a unified collateral pool across all product types. The clearinghouse provides central clearing for perpetuals, futures, options, spot, and prediction markets with digital asset settlement capabilities. Margin methodology includes SPAN, VSR, and SOM calculations, with clearing members including Marex Capital Markets, R.J. O'Brien & Associates, and Bitnomial Clearing.

Futures Commission Merchant (FCM)

Bitnomial Clearing, LLC provides FCM services (registered 2022) enabling institutional clients to access the full product suite with crypto margin deposits and settlement. Services include margin trading account management, client asset segregation, trade execution and clearing coordination, KYC verification, and regulatory compliance.

Integrated Infrastructure Benefits

• Unified Collateral: Single margin pool across perpetuals, futures, options, and spot
• Crypto-Native Operations: Post BTC/ETH as collateral, settle in digital assets
• Regulatory Certainty: Full CFTC oversight across DCM/DCO/FCM stack
• Tax Advantages: 60/40 capital gains treatment on eligible contracts
• Cross-Margining: Portfolio margining with inter-commodity spread credits up to 98%
• Institutional-Grade Risk Management: SPAN methodology with customizable parameters

Margin Rates: Bitcoin/Ethereum products at 15% maintenance margin, altcoins at 17-21%, with leverage up to 6x available.

Fees: $0.02 per side exchange fee + $0.01 per side clearing fee for most transactions.

Eligible Clients: U.S. residents and international institutional traders (subject to local regulations), requires FCM account approval and KYC verification.