The Commodity Futures Trading Commission has issued an order granting LedgerX LLC registration as a derivatives clearing organization (DCO). As specified in the order, LedgerX is permitted to clear fully collateralized digital currency swaps. A transaction will be fully collateralized if LedgerX holds, at all times, funds in the form of the required payment sufficient to cover the maximum possible loss a counterparty could incur upon liquidation or expiration of the contract.
In connection with the order of registration, the CFTC’s Division of Clearing and Risk separately issued exemptive relief to LedgerX from complying with certain CFTC regulations based on LedgerX’s fully collateralized clearing model and anticipated clearing membership base.
On July 6, LedgerX also was granted an order of registration as a swap execution facility (SEF). LedgerX initially plans to clear bitcoin options listed on its SEF.