17 December, 2019 | AtoZ Markets – ErisX is a Chicago-based crypto exchange which goes live into the world of cryptocurrency in October 2018. The exchange promises Wall Street with a quality trading experience for futures and spot cryptocurrency. Nonetheless, ErisX has been calm for most of the second half of 2019 and refuses to comment on several occasions in recent months. The company closed a $20 million Series B in April as it opened its spot market for trading. Meanwhile, its rival Bakkt has launched derivatives liked to the bitcoin, including a physically delivered Bitcoin futures and options contract.
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Is Crypto Exchange ErisX Planning Launch of Futures Trading?
Unlike most crypto-native exchanges, ErisX did not aim directly at individual traders but instead seeks to capture the flows of large brokers like TDAmeritrade. Indeed, it was stated in April that TDAmeritrade was working on connecting to ErisX. But that could have been blocked by the announced acquisition of the brokerage giant Charles Schwab.
ErisX plans to exploit the market for regulated crypto products in an industry that has gained a Wild West reputation. In a previous interview, Steven Quirk, CEO of TD Ameritrade, said that they had "unusual" participation in bitcoin education events. And they had received calls and emails from investors interested in trading by crypto.
To this end, the company claims to fill a "structural gap" in the crypto markets by bringing them closer to the equity markets. Its solution for futures contracts aimed at large institutional brokers. And it approved for a Derivatives Clearing Organization (DCO) license last July.
Launch of ErisX Could Signal New Identity for the Crypto Industry
Simultaneously, it also set up a system allowing traders to access cryptography by "low friction." Matt Trudeau, chief strategy officer of ErisX, said the Castle Island Ventures podcast that this meant making it easy and familiar for existing traders to interact with crypto.
Laurian Cristea, General Counsel at ErisX, noted at the time that when crypto futures are available, the exchange will offer a unique platform. That will allow for both spot and futures trading. Thomas Chippas, CEO of ErisX, added:
"ErisX is unique in the sense that for our digital asset market. We have divided the trading and settlement functions using the traditional DCM (exchange) and DCO (clearing) models. This reflects the structure that institutional investors expect from other asset classes. And it will help make these markets more relevant and accessible. "
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