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LedgerX becomes first federally supervised options venue for bitcoin

First Published 25th July 2017

LedgerX receives CFTC license to trade, clear and settle digital currency contracts.

Mark Wetjen, Ledger Holdings

Mark Wetjen, Ledger Holdings

Washington, DC - The U.S. Commodity Futures Trading Commission has issued an order granting LedgerX registration as a derivatives clearing organization under the Commodity Exchange Act.

Participants in the LedgerX venue will be able to obtain and hedge bitcoin and other digital currencies using exchange-traded and centrally-cleared options contracts. Initially, LedgerX anticipates listing one to six-month options contracts for bitcoin (BTC). Other digital currency contracts such as Ethereum (ETH) options, are expected to follow.

"These are exciting times to have a new digital asset class emerge," comments Mark Wetjen, who sits on the board of directors for LedgerX's parent company, Ledger Holdings. "I hope that the effort LedgerX put forward in the U.S. can set the stage for a global approach to this new digital asset class," adds Wetjen.

Under the order, LedgerX will be authorized to provide clearing services for fully-collateralized digital currency swaps. LedgerX, which was also granted an order of registration as a Swap Execution Facility on July 6, 2017, initially plans to clear bitcoin options.

In response to a request from LedgerX, the Commission's Division of Clearing and Risk has also issued a letter exempting LedgerX from complying with certain Commission regulations due to LedgerX's fully-collateralized clearing model.

This authorization to provide clearing services for fully-collateralized digital currency swaps does not constitute or imply a Commission endorsement of the use of digital currency generally, or bitcoin specifically.