LedgerX gets CFTC nod to clear derivatives products ‘not directly connected to’ crypto

The U.S Commodity Futures Trading Commission (CFTC), which regulates virtual currency derivatives, today announced that it has approved cryptocurrency exchange LedgerX’s requests to remove the “digital currency” limitation. Under this new amended order, LedgerX is now authorized to clear products not directly connected to cryptocurrencies. According to the release: 

Under the amended order, LedgerX is authorized to provide clearing services for fully-collateralized futures and options on futures in addition to the previously authorized swaps, and will no longer be limited to clearing digital currency products.

On June 23, 2020, LedgerX amended its request to additionally ask CFTC to remove the “digital currency” limitation in the product scope. The regulatory body reviewed the request, along with supporting information, and found “that the requested amendment was consistent with the requirements of the Act and applicable regulations.”

The U.S regulated exchange, LedgerX, is a Delaware limited liability company located in New York City which is also registered with the CFTC as a designated contract market and swap execution facility.

The crypto exchange claims to be the first federally regulated exchange and clearinghouse to list and clear fully-collateralized, physically-settled bitcoin swaps and options for the institutional market. 

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