LedgerX news

A company that develops an institutional derivatives exchange platform for digital currencies.

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Binance to Launch Bitcoin (BTC) Futures as LedgerX, ErisX Snag CFTC Licenses

Binance to Launch Futures In a recent keynote, Binance chief executive Changpeng “CZ” Zhao unveiled a surprising tidbit of news. Speaking to the crowd at the Asia Blockchain Summit in Taipei, which is soon expected to see a monumental debate between BitMEX’s Arthur Hayes and staunch Bitcoin critic Nouriel Roubini, the exchange head revealed that his firm would soon be launching cryptocurrency futures. A slide from Zhao’s keynote can be seen below. The slide shows a preliminary version of the trading platform, which may purportedly allow for up to 20 times leverage, and allow for investors to long and short key crypto asset markets: presumably Bitcoin, Ethereum, and Binance Coin at the minimum. .@cz_binance just announced that #Binance will offer futures contracts in his keynote at the @aba_summit! #ABS2019 #Taipei #Futures pic.twitter.com/RXlui8YY0V— Binance (@binance) July 2, 2019 Per a report on the matter from CoinDesk, the platform will go live “very soon”, but there are no concrete dates just yet. What is confirmed is that a “simulation test version” will be launched in a few weeks, potentially in line with the launch of the more regulated Binance United States. A Binance spokesperson told CoinDesk that prior to the launch of futures, margin trading will go live first. As analyst Luke Martin notes, Binance will be the first crypto exchange in history to foray into the four types of exchanges: derivatives, regulated spot, unregulated spot, and decentralized exchange. Interestingly though, Binance Coin is still hurting, losing 4.5% in the past 24 hours as a result of a collapse in the Bitcoin price. Crypto exchange types:1/Derivatives: margin, swaps, futures (Bitmex, Bybit, Deribit)2/Regulated: BTC & major alt focus, fiat on-ramps (Coinbase, Gemini) 3/Unregulated: Alt focus (Binance, Kucoin)4/DEXBinance adding futures & becoming only exchange to be in every category. https://t.co/Ikp9pwOtyv— Luke Martin (@VentureCoinist) July 2, 2019 This news comes hot on the heels of pro-futures news made by other startups in the space. Announced Monday afternoon, ErisX, a Chicago-based cryptocurrency startup, has secured a “derivatives clearing organization” (DCO) license from the Commodity Futures Trading Commission (CFTC). The Bitcoin exchange now has the authority to list “digital asset futures contracts” on a platform slated to “launch later this year”. ErisX is expected to launch physically-backed vehicles for Bitcoin, Ethereum, and potentially other digital assets this year. The firm has notably been backed by Bitmain, CME, CBOE, ConsenSys, Digital Currency Group, DRW, Nasdaq, Fidelity, and, most notably, TD Ameritrade. The retail brokerage and its main rival, E*Trade, are expected to soon open Bitcoin and digital asset trading for its millions of customers across the U.S., many of which will soon get their first taste of cryptocurrency via an ErisX product. Title Image Courtesy of Marco Verch Via Flickr The post Binance to Launch Bitcoin (BTC) Futures as LedgerX, ErisX Snag CFTC Licenses appeared first on Ethereum World News.
Ethereum World News

LedgerX wins CFTC approval for crypto-settled Bitcoin futures

LedgerX, a U.S. based Bitcoin derivatives exchange, finally won approval from the CFTC to offer BTC spot and physically settled derivatives contracts. Customers living in the U.S. and Singapore will be able to sign up to trade in July 2019. Physically settled Bitcoin futures and options finally approved in the U.S. After years of rumors about U.S. crypto derivatives that pay out with Bitcoin, a cryptocurrency exchange finally acquired approval from the country’s main trading regulator. LedgerX, a New York-based cryptocurrency exchange, received clearance from the U.S. Commodity Futures Trading Commission (CFTC) to trade physically-settled futures and swaps contracts in Bitcoin. Official CFTC approval will allow LedgerX to offer its new products to investors in the U.S. and Singapore, the Financial Times reported. Trading will start in July, the company said, with investor initially required to deposit at least $10,000, either in U.S. dollars or in Bitcoin. However, the company’s CEO Paul Chou told Bloomberg that the minimum deposit will go down to zero “within a year.” “The license will allow retail to directly invest, and they will represent the majority of the market,” Chou said. “Retail investors are the ones that drove Bitcoin to this level.” LedgerX the first exchange to expand Bitcoin derivatives offer Up until Jun. 25, the only way to settle Bitcoin futures was cash. DRW, a high-frequency trading group that has been active in the crypto market, told the Financial Times that using cash markets and other related auctions to finalize prices of crypto derivatives was “inherently flawed.” They also added that all exchanges should be able to list physically delivered contracts. However, LedgerX is currently the only one that can do so. The exchange’s competitors, most notably Bakkt, ErisX, and SeedCX, are currently going through the lengthy application process with the CFTC. And while CME Group and Cboe Global Markets have both been testing trading and delivering Bakkt Bitcoin futures, Chou believes LedgerX is “way ahead” of those test efforts. He said that other exchanges are at least six months behind them in gaining CFTC approval for physically settled Bitcoin futures. Getting the green light from the CFTC couldn’t have come at a better time for LedgerX. According to a recent report from Diar, CME Group and BitMEX have seen institutional traders drive trading volumes “to record levels.” Even the Intercontinental Exchange (ICE) is planning on testing its own Bitcoin futures in the second half of July, the report noted. The post LedgerX wins CFTC approval for crypto-settled Bitcoin futures appeared first on CryptoSlate.
Cryptoslate

Crypto Firm LedgerX Approved By CFTC As Designated Contract Market

Cryptocurrency asset management platform LedgerX has received approval from the US Commodity Futures Trading Commission (CFTC) to trade bitcoin futures that are settled in the cryptocurrency. LedgerX, backed by Miami International Holdings, is an institutional trading and clearing platform for bitcoin options. It received approval for its platform from the CFTC in July 2017. The license authorizes LedgerX to provide clearing services for fully collateralized digital currency swaps. The latest CFTC approval will allow LedgerX to operate as a designated contract market (DCM). With registration as a DCM, LedgerX will be required to demonstrate continued compliance with all applicable provisions of the CEA and CFTC regulations. “LedgerX has requested that the CFTC amend its order of registration as a DCO, which limits LedgerX to clearing swaps, to allow it to clear futures listed on its DCM,” the CFTC said. In a blog post, LedgerX said that the approval will allow them to offer bitcoin spot and physically-settled derivatives contracts (including options, futures, and more), to retail clients of any size. The products will trade on a new platform called LedgerX Omni. “With our new license granted today, both retail and institutional customers can interact in the same transparent marketplace, LedgerX Omni, the first and only regulated US institution to offer these capabilities to the retail audience,” LedgerX said. “We can now provide a robust market for a much broader audience, providing access to individuals who want to get exposure to the fast-growing crypto investment sector via derivatives products that they could not access in the past.” According to LedgerX, the onboarding process will be performed slowly to allow them to thoroughly test and monitor the technology systems and to make sure that the customer experience is outstanding. “The good news is that from day one, new traders will have access to market makers on the platform who have been providing competitive prices 24/7/365 over the last 2 years to the institutional market,” the company said.
BlockTribune

Approval For Settled Bitcoin Futures On LedgerX

The New York-based LedgerX LLC is “a US-regulated trading platform for physically-settled digital currency derivatives” and has had its application for designation as a contract...
CryptoDaily

U.S. CFTC Greenlights LedgerX Bitcoin Derivatives Contracts

The U.S. Commodity Futures Trading Commission (CFTC) on June 25, 2019, approved LedgerX LLC’s application seeking to establish itself as a designated contract market that would offer retail investors spot and physically-settled derivatives contracts that pay out in bitcoin (BTC). Bitcoin Paying Derivatives to Debut in July The U.S.-based regulated Bitcoin derivatives exchange and clearinghouse,Read MoreRead More. The post by Aisshwarya Tiwari appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News\
BTC Manager

CFTC Lets LedgerX Settle Futures in Actual Bitcoin

Coinspeaker CFTC Lets LedgerX Settle Futures in Actual BitcoinThe small US retail investors can soon buy derivatives that pay out using Bitcoins. This comes after the Commodity Futures Trading Commission (CFTC) cleared BTC derivatives provider LedgerX to provide physically settled Bitcoin futures contracts. On June 25, the CFTC said that it had approved LedgerX’s application for a designated contract market (DCM) license.That means that the company can now float new futures contracts into the market. LedgerX becomes the second company to offer these physically settled Bitcoin futures. Other firms that plan to enter this market include Seed CX, ErisX, and Intercontinental Exchange’s Bakkt. Although Bakkt’s own futures contracts are self-certified, the firm awaits licensing from the New York Department of Financial Services.This venture will let the consumers living in the US or in Singapore to sign up to start trading treading in July. Originally, the investors will have to deposit over $10,000 in dollars or Bitcoins. However, Chief Executive Officer Paul Chou said that the minimum deposit will go down to zero within a year.Unlike the cash-settled Bitcoin futures, in the physically settled futures, buyers get the underlying commodities when a contract expires. They are not compensated with a fiat equivalent. LedgerX’s approval means that the company can list the Bitcoin futures contracts and also offer its products to retail clients. The company has not offered a definite timeline of when it will start operations.However, Juthica Chou, the chief operating and risk officer said:“There’s no doubt that we’re looking to be first, we aim to be the incumbent. We think we’re better positioned and we want to be there to serve customers of all sizes. Ultimately the products are not that economically different than what we’re already offering … but this would open up to a wider [market].”LedgerX applied for this DCM in November 2018 and since then it has worked closely with the CFTC. Currently, it offers swaps and options contracts for its clients. The DCM application comes on top of the company’s existing Derivatives Clearing Organization (DCO) and Swap Execution Facility (SEF) licenses.This new license has similar responsibilities that the other two licenses have. Chou said that securing the latest license was a difficult process due to various issues involved. LedgerX is now targeting a gradual rollout of its new products that feature its retail-focused Omni platform.Chou further explained saying:“We want to be careful and conservative so we will soft-launch the Omni product. We’ll take customer feedback and we’ll make sure it works. We have an extensive waitlist and we’ll work through that until we feel comfortable.”LedgerX will roll out its existing swaps and options product to every customer. Additionally, it will introduce a new block height option product that the company self-certified recently.CFTC Lets LedgerX Settle Futures in Actual Bitcoin
Coinspeaker

CFTC Approved The Launch Of LedgerX Bitcoin Futures

Cryptocurrency derivatives provider LedgerX LLC has get a  the Authorized Derivatives Market (DCM) license from the US Comodity Futures Trading Commission (CFTC). This one will allow to launch the country's first bitcoin futures. #Bitcoin ... Запись CFTC Approved The Launch Of LedgerX Bitcoin Futures впервые появилась Bit.news.
bit.news

Ledgerx Approved to Offer Regulated Bitcoin Derivatives to Retail Investors

The U.S. Commodity Futures Trading Commission has approved Ledgerx to offer physically-settled bitcoin spot and derivatives trading, previously available only to institutional investors, to retail investors of any size. Ledgerx explained that its new platform will share the same order book as the current institutional offering so plenty of liquidity is expected from day one. Also read: Indian Cryptocurrency Regulation Is Ready, Official Confirms New License From CFTC The Commodity Futures Trading Commission (CFTC) announced Tuesday that it has approved the application of Ledgerx as a Designated Contract Market (DCM), effective Monday. The New York-based subsidiary of Ledger Holdings Inc. subsequently announced: Five years and three licenses from the U.S. federal government later, we are officially licensed to offer our physically-settled BTC spot and derivatives trading to all investors. “DCMs are most like traditional futures exchanges, which may allow access to their facilities by all types of traders, including retail customers,” the CFTC explained, adding that these platforms “may list for trading futures or option contracts based on any underlying commodity, index or instrument.” Bringing Institutional Platform to Retail Investors Following Monday’s approval, Ledgerx CEO Paul Chou confirmed that his platform is now approved to offer bitcoin spot and derivatives contracts, including futures and options, “to retail clients of any size.” The CEO previously revealed that his company “quietly applied” for this license last November. Founded in 2014, Ledgerx is also registered with the CFTC as a Swap Execution Facility and a Derivatives Clearing Organization. Until Monday, it was only approved to offer services for institutional crypto trading, typically for those with $10 million in assets or higher, Chou described, emphasizing: But bitcoin was not designed for just institutions. It’s designed for people, yet an open secret is that the vast majority of bitcoin trading happens over the counter (OTC) in markets of which most people are unaware or can’t access in any practical way. He added that “transparency in the OTC markets is dim, to say the least.” As for Ledgerx’s future plans, the CEO revealed that additional crypto-specific derivatives will be launched this year. New Platform for All Investors All products for retail investors will be listed on Ledgerx Omni, the company’s new platform for both institutional and retail customers which was first unveiled on April 15. A $10,000 wire or 1 BTC is required to open an Omni account. Chou explained that any customers in the U.S. or Singapore can use the new platform with no net worth requirements, noting: Everything is ‘physically’ settled, not cash settled which means you can both deposit and withdraw bitcoin to the account, in addition to your USD. Further, no fees will be charged for any trades. “This is not a limited time promotion, it’s a forever kind of thing … No transaction fees, forever,” the CEO confirmed. Drawing from his own experience, the former Goldman Sachs trader explained the reason behind his platform’s no-fee policy. “In essence market makers had the power over stock exchanges so they negotiated getting additional money when a trade was done … The customer ‘taking’ not only paid the price but paid more on top of that, which distorts the actual effective price that they saw on the screen.” For Omni, “market makers will pay all the exchange fees, as they’re the most capable ones to price them in their models in real time,” Chou said, reiterating that “the price you see on the screen is the total price you pay.” He further clarified: Omni will share the same order book as our current institutional offering, so there will be plenty of liquidity from day one. What do you think of Ledgerx bringing its institutional platform to all investors? Let us know in the comments section below. Disclaimer: Bitcoin.com does not endorse or support claims made by any parties in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither Bitcoin.com nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Images courtesy of Shutterstock and Ledgerx. Are you feeling lucky? Visit our official Bitcoin casino where you can play BCH slots, BCH poker, and many more BCH games. Every game has a progressive Bitcoin Cash jackpot to be won! The post Ledgerx Approved to Offer Regulated Bitcoin Derivatives to Retail Investors appeared first on Bitcoin News.
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