Tanya Abrosimova
Independent Analyst
- The company will be able to launch deliverable bitcoin futures.
- Experts warn that the license does not cover marginal trading.
Provider of cryptocurrency derivatives LedgerX LLC obtained a license of an authorized Designated Contract Markets (DCM) issued by the US Commodity Futures Trading Commission (CFTC). The permission will allow the company to launch deliverable bitcoin futures.
"#Bitcoin derivatives trading for everyone is finally here! The CFTC has officially approved our DCM application!" the company announced in the Twitter account.
According to the official press release published by CFTC:
"LedgerX has been registered with the CFTC as a swap execution facility and derivatives clearing organization (DCO) since July 2017. Effective June 24, 2019, LedgerX is also registered as a designated contract market (DCM) under Section 5 of the Commodity Exchange Act (CEA) and Part 38 of the CFTC's regulations."
Deliverable contracts are settled in an underlying asset, instead of fiat currencies. Thus, LedgerX beat the competitors - Bakkt, ErisX and Seed CX platforms - that are still awaiting the decision from the regulator.
At the same time, LedgerX plans to launch the platform Omni for trading options, swaps, and bitcoin futures for retail investors, since the interest from institutional market participants is considered to be insufficient.
However, it should be added that some experts have already expressed fears that the nature of the received license will not allow LedgerX to provide margin instruments to customers, while Bakkt should have such functionality.
Meanwhile, LedgerX promised to obtain the permission and leave the rivals behind back in April.
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