ErisX, the Chicago-based crypto derivatives provider has secured a derivative clearing organization (DCO) license from the U.S Commodity Futures Trading Commission (CFTC). ErisX shared the update in a blog post dated July 02.
According to the blog post, ErisX will allow digital asset futures for trading on its regulative derivatives market that is expected to roll out later this year.
The DCO license was obtained under the Commodity Exchange Act (CEA). The clearinghouse would have to comply with CEA’s 17 core principles, which include developing specific standards and procedures to safeguard platform members and participant funds.
In addition to procuring a DCO license, ErisX already holds a Designated Contract Market (DCM) license since 2011, the blog post added.
ErisX CEO Thomas Chippas highlighted that the platform is unprecedented, as it has separated trading and settlement by using traditional DCM (exchange) or DCO (clearing) models.
Chippas further added –
“This reflects the structure that institutional investors expect from other asset classes and will help drive these markets toward greater relevance and accessibility.”
A press release from CFTC read-
“Under the DCO order, Eris will be authorized to provide clearing services for fully-collateralized virtual currency futures. Eris’ indirect parent company, Eris Exchange, LLC, is registered with the CFTC as a designated contract market.”
Last week, ErisX’s counterpart LedgerX was granted a DCM license to deliver to the futures market to the American states. With the approved application, LedgerX’s activities will be registered under Section 5 of the Commodity Exchange Act (CEA) and Part 38 of the CFTC’s regulations.
Earlier this year, ErisX announced the addition of top executives to the company’s workforce. The “high-profile talent secure” included executives from Youtube, Barclays, and Pico-Quantitative Trading.