Cryptocurrency exchange ErisX has announced that the Commodity Futures Trading Commission (CFTC), the US regulatory agency with jurisdiction over futures markets, has granted the company a derivatives clearing organisation (DCO) license under the Commodity Exchange Act (CEA).
According to a recent blog post, the exchange is now planning to make digital asset futures contracts available for trade on its regulated derivatives market later this year.
Our DCO license is the next step in ErisX’s evolution & mission to improve the digital asset space. We worked collaboratively w the CFTC to establish a clearinghouse guided by proven regulatory frameworks that protect participants and market integrity. https://t.co/xHN4giM5lr
— ErisX_Digital (@ErisX_Digital) July 1, 2019
In addition to its new DCO license, ErisX has reportedly held a Designated Contract Market (DCM) license since 2011.
A spot and futures trading platform
ErisX launched its spot markets in April this year, with the promise of eventually rolling out a single digital asset platform for spot and futures trading. At the moment, the ErisX spot market exchange includes US dollar trading pairs with Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
The firm has said that its clearinghouse will comply with the 17 core principles of the CEA. This includes establishing standards and procedures to protect users, risk management capabilities, and rule enforcement policies across the platform.
According to ErisX CEO Thomas Chippas, the exchange will stand apart from its competitors in using a two-stream DCO and DCM system to separate trading and settlement.
The CEO added: “This reflects the structure that institutional investors expect from other asset classes and will help drive these markets toward greater relevance and accessibility.”
Dean Carlson, head of digital asset investments at Susquehanna International Group, also commented on the regulatory approval, stating: “The frameworks and regulations in place on the ErisX platform ensure not only security and transparency, but familiarity in a nascent asset class.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.