cryptocoinsnews.com / ELLIOT MARAS / 11/09/2015
LedgerX, a New York-based trading platform for bitcoin options, has moved closer to becoming the first regulated exchange and clearinghouse to list and clear bitcoin options for the institutional market.
The U.S. Commodity Futures Trading Commission (CFTC) has approved LedgerX’s application for a temporary registration as a swap execution facility. LedgerX plans to list and clear fully-collateralized, settled options on bitcoin. The next step for the commission is to review the application for full registration.
The CFTC approved temporary registration following a comment period from Dec. 15, 2014 to Jan. 30, 2015. The comments are available on the CFTC website. Comments from bitcoin industry players supported approval of the application. Some comments raised concerns.
Mondo Visione, a London, U.K.-based news source for currency traders, noted that LedgerX would be the first regulated venue where institutional investors could obtain bitcoin and use an order book trading mechanism, tailored for institutional trading.
Bitcoin Players Urge LedgerX Approval
Tony Gallippi, founder and CEO of BitPay Inc., encouraged CFTC to approve LedgerX to clear asset-settled bitcoin derivatives contracts. “We have spent much time with the team from LedgerX and found them to be extremely knowledgeable and capable of building a reliable and transparent market for bitcoin options,” Gallippi wrote.