New Crypto Exchange ErisX Gets Support from TD Ameritrade, CBOE, High-Speed Traders

 In Exchanges

The platform will be launched next year and will offer BTC, ETH, LTC, and BCH as well as futures contracts on virtual assets.

TD Ameritrade, one of the leading global retail brokerages has invested in ErisX, a new cryptocurrency trading platform owned by Chicago-based derivatives market Eris Exchange LLC TD, TD Ameritrade said on Wednesday. The new project also received support from other established financial players including Cboe Global Markets (CBOE), and high-speed trading giant Virtu Financial, ErisX explained in a separate press release.

TD Ameritrade, which did not disclose the funding amount, is the most significant backer of the upcoming exchange as the retail brokerage has more than 11 million clients and executes an average 780,000 trades per for them. TD Ameritrade is only investing, while CBOE and Virtu Financial have shares in the ErisX parent company, Eris, and will be market makers of the future exchange.

“Our retail clients are seeking to access and trade digital currency products in the same way they do with traditional capital markets – through a legitimate, regulated and transparent exchange,” Steve Quirk, executive vice president of trading and Education at TD Ameritrade, said in the statement.

ErisX plans to start services next year and will develop a derivative trading platform and clearing service. The exchange will support trading in Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), as well as cryptocurrency futures and spot contracts. The company wants its virtual coin futures to be physically delivered, which means that when contracts expire, owners will receive the underlying cryptocurrency, not cash. This practice is opposite of CME Group and CBOE Bitcoin futures.

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ErisX filed documents for a derivatives clearing organization (DCO) with US Commodity Futures Trading Commission (CFTC) last year, and it expects approval in the first quarter of 2019 as per the company’s public roadmap. The upcoming exchange plans launching spot contracts in Q2’19, and starting futures offering after June. As ErisX will get clearing services by its clearing house, this issue also needs CFTC approval, the exchange’s spokeswoman Jessica Darmoni told Bloomberg.

ErisX received support from several cryptocurrency investors including DRW Venture Capital, which is the owner of one of the largest virtual coin traders Cumberland. Digital Currency Group, NEX Opportunities, Pantera Capital, CTC Investments Group, and one of the investors into Elon Musk’s SpaceX, Valor Equity Partners, also backed ErisX.

Bakkt, the upcoming exchange, owned by New York Stock Exchange’s (NYSE) parent company IE, will be one of ErisX’ main competitors as Bakkt also wants to offer physically delivered cryptocurrency futures.

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