Coinbase Derivatives, LLC has submitted a self-certification to the Commodity Futures Trading Commission (CFTC) for the listing of Solana (SOL) futures contracts, set to begin trading on February 18, 2025. The filing, dated January 30, 2025, outlines the specifications of the new contract, which will be a USD-settled index future with a contract size of 100 SOL.
About Coinbase Derivatives Solana Futures Filing
“The Exchange hereby submits for self-certification its initial listing of the Solana Futures contract,” Coinbase Derivatives stated in its filing. The Solana futures contract (SLC) will be cash-settled using the MarketVector™ Coinbase Solana Benchmark Rate, which tracks SOL’s price on Coinbase’s spot exchange. Final settlement prices will be determined at 4:00 PM London time on the last Friday of each contract month. The contract’s notional value is approximately $25,000, based on an assumed price of $250 per SOL.
The filing specifies a position limit of 3,500 contracts, equivalent to 350,000 SOL. “With a $240 price of Solana, this is equal to $84 million notional, which would be 0.07% of the Solana market cap, currently at $118B,” Coinbase stated. This limit is set lower than those for Bitcoin futures, which have a position cap at 0.10% of market capitalization.
Further, Coinbase Derivatives has implemented multiple safeguards to prevent market manipulation. The filing emphasizes that the futures contract is based on a price index managed by MarketVector Indexes GmbH, a firm regulated by Germany’s BaFin. The exchange also has an agreement with Coinbase, Inc. to access spot market data for regulatory inquiries.
“The manner in which the Index is calculated, combined with oversight from Coinbase’s surveillance team, makes it difficult, if not impossible, to manipulate the price of the underlying market in a way that would affect the contract,” the filing notes.
Solana’s Market Position & Volatility Considerations
Solana has grown into a major blockchain network, processing over 65,000 transactions per second with low fees. The filing highlights SOL’s appeal for decentralized applications (dApps), non-fungible tokens (NFTs), and gaming. However, Coinbase Derivatives acknowledges that SOL remains a volatile asset.
“Solana’s current 30-day volatility is approximately 3.9%. In similar timeframes, Bitcoin and Ethereum’s 30-day realized volatilities are around 2.3% and 3.1%, respectively,” the exchange stated. To mitigate extreme price swings, the contract will include a 10% price fluctuation limit per hour, triggering a two-minute trading halt if breached.
Coinbase Derivatives claims that discussions with market participants and futures commission merchants (FCMs) have shown broad support for the Solana futures contract. The firm also asserts that the contract complies with all relevant CFTC regulations.
“The Exchange is not aware of any substantive opposing views to the contract,” Coinbase wrote. The Solana futures contract will be available for trading on the Coinbase Derivatives platform from Sunday to Friday, with a daily halt from 4:00 PM to 5:00 PM CT.
Also Read: Coinbase Strengthens Advisory Board with Political and Financial Experts
Source: https://www.cryptonewsz.com/coinbase-derivatives-solana-futures-with-cftc/