Cryptocurrency exchange platform ErisX has successfully secured a derivatives clearing organization (DCO) permit from the U.S Commodity Futures Trading Commission (CFTC).
In a recently published blog post, ErisX revealed that it would make contracts for digital asset futures open for trade on its standardized derivatives market late this year through its newest DCO.
The Chicago-based company rolled out its spot market back in April, with the assurance that it will soon release a single crypto platform for futures and spot trading. At the moment, the company’s spot market exchange comprises of U.S trading partners with bitcoin (BTC), ether (ETH), litecoin (LTC), and bitcoin cash (BCH).
Laurian Cristea on the Topic
ErisX’s General Counsel Laurian Cristea stated that once virtual asset futures are opened, the exchange platform will propose a single system that can offer both future and spot trading.
Aside from acquiring a DCO license, the company allegedly carried a Designated Contract Market (DCM) permit since 2011. Thomas Chippas, ErisX CEO, explained that the company is distinct from others in that it utilizes a DCM and DCO two-way system to split settlement and trading.
According to Chippas, the company is unique because they have separated the settlement and trading functions of their digital asset market and use conventional DCM models for exchange and DCO for clearing.
Chippas added that this approach mirrors the framework that institutional investors anticipate from other assets and will assist in driving these markets forward to greater accessibility and relevance.
License also given to LedgerX
Aside from ErisX, the CFTC also gave a DCM license to LedgerX back in June. The clearing platform and organized cryptocurrency derivatives company already had a DCO and has just obtained its DCM license.