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 market approved by the US Commodity Futures Trading Commission, which means that it can now offer physically settled Bitcoin futures contracts.
LedgerX is a wholly-owned body of Ledger Holdings Inc., which "has been registered with the CFTC as a swap execution facility and derivatives clearing organization (DCO) since July 2017." Now, it is also “registered as a designated contract market (DCM) under Section 5 of the Commodity Exchange Act (CEA) and Part 38 of the CFTC’s regulations."
LedgerX had asked the CFTC to Alter the order of registration as a DCO. This limits LedgerX to clearing swaps so that it could futures listed on its DCM.
The application was first filed in November last year and with an approval, it means that the firm will be able to list Bitcoin derivative contracts and offer them to not just retail clients but institutional ones too.
In a recent blog post by the CEO of Ledger, Paul Chou, these new 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. 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."
"By operating both the exchange and clearing house, we can uniquely offer clients a vertically integrated trading and custody solution."
In terms of for when people will be able to trade on LedgerX Omni, Chou said:
"We have the license, but we also have a long waitlist. On-boarding will be performed slowly and require your patience, to allow us to thoroughly test and monitor the technology systems throughout the process, and to make sure that the customer experience is outstanding."
The firm is also allegedly planning to launch some further crypto-specific derivatives however, nothing has yet been announced.