ErisX, a cryptocurrency exchange platform based in Chicago has successfully managed to get a derivatives clearing organization (DCO) from CFTC (United States Commodity Futures Trading Commission). This is good news for the vibrant and growing exchange platform, as it will help it to expand its clientele base.
ErisX Gets a Derivatives Clearing Organization License
According to a blog article from the company that was published on July 1st, ErisX has plans to make it possible for their clients to access digital asset futures contracts on its existing and regulated derivatives market in the cause of this year.
Notably, ErisX launched a spot market in April this year and promised its customers to introduce a single digital asset platform that will be specifically tailored to support spot and futures trading. At the time of writing, the spot market exchange owned by the company includes the United States dollar trading pairs with cryptocurrencies such as litecoin (LTC), bitcoin cash (BCH), and Bitcoin (BTC).
While speaking during a recent press interview, the General Counsel at ErisX, Laurian Cristea said that as the digital asset futures becomes available to their customers; the platform will provide a single platform that will facilitate futures and spot trading.
Apart from the DCO license, ErisX is also rumoured to have a Designated Contract Market (DCM) license since 2011. In one of the interviews, Thomas Chippas, the CEO said that the exchanges sets itself apart from the rest by having a DCM and DCO two stream system that allows it to provide settlement and trading services separately.
“ErisX is a unique in that for our digital asset market, we have divided the trading and settlement functions using traditional DCM (exchange) and DCO (clearing) models. This reflects the structure that institutional investors expect from other asset classes and will help drive these markets towards greater relevance and accessibility.”
As reported previously by a number of cryptocurrency exchange news websites, CFTC has issued a DCM licenses to the regulated cryptocurrency derivatives and clearing platform, LedgerX back in June. In a statement from CFTC, LedgerX had a DCO license and only needed to get DCM registration. There is also a rumour that CFTC has held several meetings with Facebook to discuss the entry of its virtual currency Libra.
DCO license will have a major impact on growth, profitability, and competitiveness of ErisX. United States Commodity Futures Trading Commission decision to grant the exchange this license is a sign that it is committed to impacting the cryptocurrency industry in the country positively.