- According to an executive working for ErisX, the firm is continually working towards creating a number of novel trading/custody solutions for crypto enthusiasts all over the globe.
- ErisX has currently applied for a DCO license, which if obtained, will allow the firm to operate as a CFTC-regulated clearinghouse.
As per a tweet released by ErisX CSO, Matt Trudeau, a couple of days back, the firm is looking to realize four of its core goals in the near future. These include:
- The creation and launch of a futures market
- Setting up a spot market
- Securing a Bit License
- Obtaining a DCO clearance.
It is worth pointing out that as things stand, ErisX currently possesses a DCM contract that allows the firm to operate a CFTC-regulated futures exchange. However, by the end of the year, the ErisX team wants to obtain a DCO [Derivatives Organization] license — that will allow it to serve as a CFTC-regulated clearinghouse.
To be even more specific, we can see that once ErisX is given permission to serve as a clearinghouse, it will gain complete control over its clear and settled trades.
In regards to this entire development, Trudeau was quoted as saying:
“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “
From a post-trade POV, we can see that a DCO will allow ErisX to keep all of its cash, crypto, and the futures reserves in its clearinghouse. This would not only allow for more tx efficiency but also make trading easier for the platform’s core user base.
During a recent interview, Trudeau was quoted as saying that despite BTCs value growing dramatically over the past few weeks, the crypto market as a whole still needed to mature more.
@JillMalandrino from @Nasdaq @TradeTalks talks with Matt Trudeau about the benefits of a unified platform for spot and futures on digital assets at @viablemkts Crypto Evolved conference. https://t.co/0Eq24KwUAl
— ErisX_Digital (@ErisX_Digital) June 25, 2019