Crypto Firm LedgerX Approved By CFTC As Designated Contract Market

News, Regulation | June 26, 2019 By:

Cryptocurrency asset management platform LedgerX has received approval from the US Commodity Futures Trading Commission (CFTC) to trade bitcoin futures that are settled in the cryptocurrency.

LedgerX, backed by Miami International Holdings, is an institutional trading and clearing platform for bitcoin options. It received approval for its platform from the CFTC in July 2017. The license authorizes LedgerX to provide clearing services for fully collateralized digital currency swaps.

The latest CFTC approval will allow LedgerX to operate as a designated contract market (DCM). With registration as a DCM, LedgerX will be required to demonstrate continued compliance with all applicable provisions of the CEA and CFTC regulations.

“LedgerX has requested that the CFTC amend its order of registration as a DCO, which limits LedgerX to clearing swaps, to allow it to clear futures listed on its DCM,” the CFTC said.

In a blog post, LedgerX said that the approval will allow them to offer bitcoin spot and physically-settled derivatives contracts (including options, futures, and more), to retail clients of any size. The products will trade on a new platform called LedgerX Omni.

“With our new license granted today, both retail and institutional customers can interact in the same transparent marketplace, LedgerX Omni, the first and only regulated US institution to offer these capabilities to the retail audience,” LedgerX said. “We can now provide a robust market for a much broader audience, providing access to individuals who want to get exposure to the fast-growing crypto investment sector via derivatives products that they could not access in the past.”

According to LedgerX, the onboarding process will be performed slowly to allow them to thoroughly test and monitor the technology systems and to make sure that the customer experience is outstanding.

“The good news is that from day one, new traders will have access to market makers on the platform who have been providing competitive prices 24/7/365 over the last 2 years to the institutional market,” the company said.