ErisX, a new venture backed by investors like TD Ameritrade and CBOE among others, has announced plans to launch a designated contract market (DCM) and derivatives clearing organization (DCO).
Capital Market Heavyweights Come Together
Chicago-based Eris announced on Wednesday its plans to launch a derivatives exchange and clearing organization – ErisX – that will include fully regulated digital asset futures and spot contracts on one platform. The new venture is backed by some big names from the traditional capital markets as well as from the digital assets market space.
The firms that have invested in the new digital exchange include DRW Venture Capital, Valor Equity Partners, TD Ameritrade (AMTD), Virtu Financial (VIRT), NEX Opportunities, Cboe Global Markets (CBOE), CTC Group Investments, Digital Currency Group, Nico Trading, Pantera Capital, Third Stone Partners, CMT Digital, Susquehanna International Group, XR Trading, C2 Capital Management and ED&F Man Capital Markets Inc.
Thomas Chippas, former Head of Global Quantitative execution at Citibank, has joined as CEO of ErisX, while and Neal Brady, former Managing Director and Global Head of Business Development at CME Group, has been named Executive Chairman.
A Crypto Exchange That Is CFTC-Regulated
ErisX is designed to be a cryptocurrency exchange that is regulated, transparent and stable and at the same time reliable and trusted like a traditional financial marketplace. The firm has filed for a Derivatives Clearing Organization (DCO) with the CFTC (US Commodity Futures Trading Commission), and the approval from the regulator is expected in Q1 of 2019.
The launch of the new platform should encourage participation and investment from institutional players who have so far shied away from the digital asset investments because of their suspect integrity of the current breed of exchanges.
Investors’ Outlook
Here’s what some of the investors have to say about the start-up:
“Closing this round of funding enables us to accelerate investments in the platform and our team,” said Chippas. He added, “Leveraging our heritage and experience with exchange infrastructure, our market participants will benefit from modern trading tools on a fair and transparent platform. ErisX’s enhanced experience will provide the opportunity for new participants to enter the digital asset market and existing participants a superior venue for their execution and clearing needs.”
Tim Hockey, President and CEO of TD Ameritrade Holding Corporation said:
As investors in ErisX, as well as a strategic contributor in the initiative, we are looking forward to advancing our innovation goals by working with an established, CFTC-regulated exchange that will include digital asset futures and spot contracts on a single platform. Working with these innovative companies gives us the opportunity to help them develop cryptocurrency products that we believe will fill a gap for retail investors within the digital currency ecosystem.
“ErisX will eliminate many of the impediments to institutional adoption and usher in a new wave of market participants,” said Don Wilson, Founder and CEO of DRW, which includes Cumberland, a global leader in the crypto-asset markets. He also said, “This further develops the digital asset space and brings more transparency to these evolving markets.”
ErisX, apparently, will integrate digital asset products into the robust and compliant capital market workflows bringing trust and reliability for individual and institutional traders. The spot and futures contracts are expected to be launched in Q2 and H2 of 2019 respectively.
Do you think 2019 is going to be a game-changing year for cryptocurrencies with institutional money coming into the digital assets space? Let us know in the comments below.
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