The Commodity Futures Trading Commission, or CFTC, recently approved a license change for the clearinghouse from ErisX. The license change gives ErisX the freedom to offer more products for retail.
“The meaning of the amended regulation is that it expands our authorized activities This allows us to authorize products in other goods that go beyond virtual currencies or crypto“ErisX General Counsel Laurian Cristea said to Cointelegraph.
“We can now list futures or swaps across the whole spectrum of commodities, from new contracts related to cryptocurrencies such as hash rate futures or crypto indices to event contracts and contracts on other commodities, including for example base metals, tokens, precious metals and diamonds. “
The ErisX brand includes an exchange where spot and futures trading takes placeCristea made it clear that it is not just a clearing company that also facilitates spot and futures activities. “At the federal level, our exchange has a DCM (Designated Contract Market) license and our clearing house has a DCO (Derivatives Clearing Organization) license,” he said.
In contrast to the crypto room Regulation requires traditional mainstream finance to differentiate the different wings of a company. Exchanges provide market availability, while clearing houses manage assets and their settlement in the backend.
The regulation requires separate units for trading and clearing derivatives. The same is not true for spot trading, although ErisX uses this structure anyway because of its advantages. including increased asset protectionaccording to Cristea.
The CFTC change not only expands the main market’s commodity clearing capability, it also gives ErisX an edge. “Our clearinghouse platform, which consists of our TCS ™ technology and the DCO license, now has several important differences and features that are not included in all DCOs.”said the CEO of ErisX, Thomas Chippas, in a public press release on Wednesday.
“We can handle fully guaranteed futures and swaps on cryptocurrencies 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 growing services of our clearinghouse. “
The success also gives ErisX the opportunity to work with other companies and corporations. “With the integrated platform, licenses and operation of ErisX for exchanges and clearing, we can offer services to third parties who have innovative business ideas that require a regulated market infrastructure.”read the statement.
Regulation has become more central to the cryptocurrency industry in recent years, and regulatory compliance has become imperative.