Altcoin News: CFTC Granted ErisX Permission to Launch Deliverable Bitcoin Futures

July 2, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The US Commodity Futures Trading Commission (CFTC) yesterday approved the application of the ErisX crypto-derivative service provider for providing services as a derivatives clearing center (DCO).

This permission, in addition to the company’s already licensed specialized contract market (DCM) license, opens up opportunities for it to launch new regulated cryptocurrency futures with settlements in the underlying asset.

ErisX does not provide a specific timeline for launching the tool, only noting that it intends to do this “later in the year.”

In the accompanying statement, ErisX CEO Thomas Chippas drew attention to the fact that his companies had two licenses:

“This reflects the structure that institutional investors expect from other asset classes and will help drive these markets toward greater relevance and accessibility.”

Last week, a similar permit, along with a license, was issued to LedgerX, which also does not specify when it can start servicing new futures.

In addition to the license, ErisX received from CFTC a letter of non-action regarding certain aspects of the company’s activities. Thus, the requirement to ensure the provision of all customer transactions allowed ErisX to be freed from the need to confirm the ability of the clearinghouse to cover potential losses in case of their occurrence.

Last October, ErisX attracted investments of a major US brokerage company TD Ameritrade.

Author: Marko Vidrih