ICE’s Crypto Trading Platform Expands Risk Management With First Acquisition

Announcements, News | January 15, 2019 By:

Digital assets platform Bakkt has entered into an agreement to acquire certain assets of Rosenthal Collins Group (RCG), an independent futures commission merchant.

Launched in August 2018 by the Intercontinental Exchange (ICE), Bakkt is cryptocurrency platform that aims to bring digital assets to the mainstream and help unlock the potential of the technology. It has been working closely with the Commodity Futures Trading Commission (CFTC) to create a “seamless” global ecosystem for cryptocurrencies that would cover the spectrum from federally regulated markets and warehousing to merchant and consumer needs.

Founded in 1923 and is headquartered in Chicago, Illinois, RCG engages in the futures brokerage business. It offers services in the areas of clearing, trade execution, risk management, introducing broker services, account management, market commentary, and managed futures. It also provides trading platforms for individual, institutional, professional, and high-frequency traders.

In December 2018, RCG announced the sale of all its customer accounts to commodity broker Marex Spectron. As part of that transaction, Bakkt’s aim was to purchase certain valuable assets related to developing its platform. Bakkt is expecting to complete the transaction in February.

In a Medium post, Bakkt CEO Kelly Loeffler said that the acquistion will enhance the company’s “risk management and treasury operations with systems and expertise.” It will also contribute to Bakkt’s regulatory, anti money laundering and know your customer (AML/KYC), and customer service operations.

“This acquisition underlines the fact we’re not standing still as we await regulatory approval by the CFTC for the launch of regulated trading in our crypto markets,” Loeffler said. “Our mission requires significant investment in technology to establish an innovative platform, as well as financial market expertise to deliver the most trusted fintech ecosystem for digital assets.”

The launch of Bakkt’s digital assets platform had previously been set for January 24, but will be amended pursuant to the CFTC’s process and timeline and to ensure that platform participants are ready to trade on day 1.