A recent license modification by the CFTC gave the green light to the expansion of ErisX to offer more products for trading.
The Commodity Futures Trading Commission, or CFTC, recently approved a license amendment for the ErisX clearing house. The license modification allows ErisX the freedom to offer more products for trading.
“The sense of the Amended Order is that it expands our approved activities by allowing us to license products in other commodities beyond Crypto Bull virtual currencies or crypto,” ErisX general counsel Laurian Cristea told Cointelegraph.
“We can now list futures or swaps on the entire spectrum of commodities, from new contracts related to cryptosystems, such as hash rate futures or crypt indexes, to event contracts and contracts on other commodities, including, for example, tokenised base metals, precious metals and diamonds”.
The leaders of the various projects for a CBDC spoke today on a digital panel
The ErisX brand includes an exchange that hosts spot and futures trades, as well as a clearing entity, which also facilitates spot and futures activities, Cristea said. “At the federal level, our exchange has a Designated Contract Market (DCM) license and our clearinghouse has a Derivatives Clearing Organization (DCO) license,” he explained.
Unlike the crypto space, regulation requires traditional core finance to distinguish the different wings of a company. Exchanges provide market availability, while clearing houses handle assets and their settlements on a back-end basis.
Regulation requires separate entities for trading and clearing derivatives. This is not the case with spot trading, although ErisX uses this structure anyway, due to its benefits, which include increased asset protection, according to Cristea.
CFTC President admits that regulation must keep up with innovation
The CFTC amendment not only adds the main market’s commodity clearing capability, but also gives ErisX an advantage. “Our clearinghouse platform, comprised of our TCS technology ™ and DCO license, now has several important distinctions and capabilities that do not appear in all DCOs,” ErisX CEO Thomas Chippas said in a public press release on Wednesday.
“We can clear fully guaranteed futures and swaps related to cryptosystems as well as contracts on all other commodities. We look forward to continuing to welcome FCMs, institutions, market makers, professional trading firms and individuals to benefit from the expanding services of our clearing house.
Commissioner Brian Quintenz will not be leaving the CFTC this month after all
The achievement also opens up ErisX’s clearing house to work with other companies and entities. “ErisX’s integrated trading and clearing technology platform, licensing and operations allow us to offer services to third parties who have innovative business ideas that require a regulated market infrastructure,” the release reads.
Regulation has become more central to the cryptomoney industry in recent years, and compliance has become imperative.
Translated with www.DeepL.com/Translator (free version)