The US Commodity Futures Trading Commission (CFTC) has granted a temporary registration to bitcoin options platform LedgerX as a swap execution facility.
LedgerX is aiming to become the first approved facility where physically-settled options on bitcoin can be listed and cleared. The US Commodity Futures Trading Commission (CFTC) wrapped up its extended comment period on their proposal earlier this year. Many in the crypto industry voiced their support, citing the potential benefits of hedging against market risk and the ability to gain insight into market sentiment and volatility.
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In a press release, the CFTC stated that “as a next step, the Commission will undertake a substantive review of LedgerX’s application for full registration.”
Similarly, LedgerX CEO Paul Chou commented, “This is a first step, and is positive progress, but it is just one milestone toward our ultimate goal. Our mission is still to obtain a derivatives clearing organization license (DCO) to operate a federally regulated bitcoin derivatives exchange and clearing house. At this time, we do not intend to launch with only a SEF license.”
As part of efforts to find favor with the regulators, LedgerX enlisted the services of London-based Ancoa, a market surveillance provider for exchanges, to help detect price manipulation.