- ErisX REST API will now grant registered clients access to their Block Trade platform. This will be a reserve for the Institutional investors due to the large volumes of minimum trades required.
- The pre-negotiated deals will only be reported for automated verification and instant clearing by the ErisX clearing win.
ErisX has now unveiled a REST API that grants its clients access to their Block Trade. This is a facility that allows investors to make big trades, within the given array of listed spot and futures commodities, privately.
ErisX is implementing a workflow that is familiar to capital markets professionals and improves upon crypto OTC practices. Learn more about Block Trading via our new REST API. https://t.co/Qrxp5HfTDf
— ErisX_Digital (@ErisX_Digital) May 26, 2020
Authorized users will be able to table already struck Block deals to the exchange via the REST API or their web-based platform. This will then be subjected to verification from the exchange. It's also set to include verifying credit for both parties and then submitted to their clearing arm, ErisX clearing for immediate settlements.
It's only after the deals have already gone through that they can be published on their portal. This system would be restricted to spot trades of 10 BTC, 100 BCH, 100 ETH and 250 LTC while including 10 Future BTC contracts and 50 ETH contracts according to the release.
They have, however, insisted that this feature would only be afforded to Clearing members that had already joined and those currently onboarding ErisX.
They would then be required to pre-fund their accounts before attempting any trades to ensure transactions go through smoothly, whilst mitigating counterparty woes. The parties would be required to either submit their trade dates to the system or within 15 minutes of execution.
This, according to CEO, Tom Chippas, would mitigate risks brought about by OTC based workflows while ensuring competitive prices for their clients.
“We are removing the friction and risks associated with OTC based workflows…. Our Members with a competitively priced service.”
Other exchanges have also launched similar Block trades for their institutional investors including Coinbase and Japanese based Nomura. However, Carlos Mosquera Benatuil, CEO of Solidus OTC is confident that the Commodity Futures Trading Commission oversight would rule out counterparty settling risks.
Notably, the TD Ameritrade backed crypto exchange recently launched physically settled Ether contracts in the US. These would be offered under the supervision of the CFTC.
This was bolstered by the fact that ErisX clearing was able to get approval for the coveted BitLicense by the NYFDS. This license has only been issued to 25 other companies since it was introduced in 2015. It is a must-have for any crypto firm that intends to engage with New York-based clients.