Crypto Exchange ErisX Granted Derivatives Clearing Organization (DCO) License For Futures Trading
Prominent crypto exchange from the Illionois ErisX has been granted Derivatives Clearing Organization (DCO) license by the Commodity Futures Trading Commission (CFTC).
Our DCO license is the next step in ErisX’s evolution & mission to improve the digital asset space. We worked collaboratively w the CFTC to establish a clearinghouse guided by proven regulatory frameworks that protect participants and market integrity. https://t.co/xHN4giM5lr
— ErisX_Digital (@ErisX_Digital) July 1, 2019
Thomas Chippas, the Chief Executive Officer of ErisX says:
“ErisX is 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 toward greater relevance and accessibility.”
Under the DCO order, Eris will be authorized to provide clearing services for fully-collateralized virtual currency futures. The terms and conditions of the order require, among other things, that Eris comply with applicable provisions of the CEA, including the core principles in Section 5b of the CEA and with CFTC regulations.
ErisX specializes in digital asset space that offers both spot and futures contracts on one platform. It integrates digital asset products and technology into reliable, compliant, and robust capital markets workflows. ErisX solution provides trading, deposits, and withdrawals on a stable, proven capital markets technology infrastructure. The firm has notably been backed by Bitmain, CME, CBOE, ConsenSys, Digital Currency Group, DRW, Nasdaq, Fidelity, and, most notably, TD Ameritrade.
In 2018, a group of Wall Street veterans and crypto pioneers unveiled ErisX, a to-be-launched cryptocurrency exchange slated to offer digital assets to a retail and institutional audience. However, like many other exchanges in the works, the startup fell on harsh regulatory setbacks, with the CFTC suddenly becoming hesitant towards Bitcoin.
Laurian Cristea, General Counsel at ErisX:
“Our clearinghouse is guided by a long-standing regulatory framework that protects participants and market integrity, and we are applying these same regulatory principles to our recently-launched spot market as well. Obtaining the DCO license is the second key enterprise goal we achieved this year, after launching our spot market. When futures on digital assets launch later this year we will offer the market a single unified platform for both spot and futures.”