futures delivery contracts
The regulated crypto derivatives trading platform LedgerX intends to launch Bitcoin futures with physical delivery in the United States. To this end, the company applied for a Designated Contract Market (DCM) license at the CFTC.
Calculations on futures contracts for bitcoin, for example, currently being traded CME, are made in US dollars. In the LedgerX option, at the end of the contract, the trader will receive the underlying asset – Bitcoin (BTC) .
As the co-founder of LedgerX Utica Chow (Juthica Chou) specified, the license application was first submitted in November last year, and the new BTC product itself is aimed at the retail investor market.
The company plans to soon launch a version of its crypto-derivatives retail platform, called Omni. The listing will include futures, swaps and options based on BTC, it will also provide clearing and storage services based on the existing LedgerX infrastructure.
“We have long had a goal to expand the circle of clients we can serve, beyond our institutional base – this is the natural next step for us. Omni, interacting with the existing institutional liquidity fund, from the first day will offer retail customers the highest level of experience , ”said Utica Chou.
On April 15, the company announced its intention to obtain a CFTC license, which would make LedgerX an authorized derivatives market ( Designated Contract Markets ). This, in particular, will provide an opportunity to launch deliverable futures. The latter differ from the calculated ones in that they are based on a physical cryptocurrency , and not its dollar equivalent.
In addition, LedgerX plans to make the new product available to retail investors.
“We will be able to serve any customers, we will not be limited to institutional ones ,” said operational director of the exchange, Jutik Chow.
After receiving approval from the regulator, LedgerX retail customers will be able to trade options and futures on the new platform called Omni. The latter is based on the existing infrastructure of the company, which includes trading and custodial services.
LedgerX applied for a CFTC license in November 2018. According to Chow, “constructive dialogue” has been ongoing since the regulator. For the time being, the company finds it difficult to designate approximate dates for launching new products.
However, according to Chou, there is every chance that the CFTC will approve the application LedgerX before its competitors in the face of Bakkt, Seed CX and supported by TD Ameritrade broker startup ErisX.
"We are always happy to be the first ," Chow said.
Recall, Bakkt cryptocurrency platform, which is expected to launch this year , previously announced that its first product will be Bitcoin futures with physical delivery.
Publication date 17/04/2019
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