ErisX, an America-based crypto exchange, received a license for DCO or derivatives clearing organization from the CFTC or Commodity Futures Trading Commission.
The permit has been given to the cryptocurrency exchange under the CEA or Commodity Exchange Act. It will enable this exchange to offer future contracts pertaining to digital assets to its clients. The exchange already has a license for DCM (designated contract market), and the fresh one will supplement to that.
It was on June 2 that the announcement was made official. However, the exact timeline to launch the futures instruments was not specified. It was simply mentioned that the products for the cryptocurrency derivatives would be initiated “later this year.”
Contrary to the majority of the other derivative products in the market, the products of ErisX will be settled physically. It signifies that traders will get Bitcoin when the contract is delivered rather than the fiat currency.
Trading of futures and spot on a single platform
It was in April this year when this Chicago-based cryptocurrency exchange came up with their spot trading platform meant for crypto assents. The platform offers fiat-crypto trading for leading cryptocurrencies such as Bitcoin Cash, Litecoin, Bitcoin, and Ether.
Although the offerings of the platform are limited in comparison to its rivals, the crypto exchange is now adding futures trading on its existing platform. It has also succeeded in grabbing the attention of several investors last year.
Thus, ErisX was successful in launching a single platform for digital assets to enable futures and spot trading. So, Erix does not only hold a license for DCO now but also has a license for DCM, or Designated Contract Market, since 2011.
Thomas Chippas, the Chief Executive Officer for ErisX, stated that the crypto exchange is different from others as they use a 2-stream system of DCM and DCO for separating trading from settlement.
Gustavo Fonseca loves anything digital and crypto-related which makes him sit up and pay attention. He got into the world of digital marketing and business digital transformation career in 2010. Some time later he got into Crypto, a dynamically developing segment at the intersection of the financial services and technology. Gustavo joined TheDailyCoins in September 2018.