TD Ameritrade, giant online brokerage firm along with several Wall Street firms, is ready to back a new cryptocurrency market. The brokerage giant is investing in Eris Exchange’s new cryptocurrency market called ErisX as a part of the cryptocurrency initiative. Well-known trading firms like DRW Holdings and Virtu Financial have stakes in Eris Exchange.
ErisX is a platform that will allow individuals to trade cryptocurrencies and other derivatives associated with virtual assets. According to The Block, the cryptocurrency market will be headed by Thomas Chippas, a well-known veteran in the trading sector.
Thomas Chippas said:
“In our opinion, there is no lack of interest in building out markets for people wishing to trade digital assets and there is plenty of space for people to come in with a regulated exchange and clearing house”
Speaking to Bloomberg media, spokeswoman Jessica Darmoni stated that the platform will allow trading in Bitcoin [BTC], Bitcoin Cash [BCH], Ethereum [ETH] and Litecoin [LTC]. Along with this, investors will also be able to trade the futures contract in cryptocurrencies. She further said that the contracts will be “physically delivered.”
Physically delivered contracts refers to customers being paid in the underlying cryptocurrency instead of fiat when the futures contract expires.
Darmoni stated that ErisX is seeking approval to self-certify new contracts with the U.S Commodity Futures Trading Commission [CFTC]. The firm is expecting cash trading to begin in Q2 of the coming year after receiving a green signal from the CFTC.
A clearing-house owned by Eris is also under review by the CFTC. Post the approval, the derivatives will be cleared by the clearing-house. Assuming the grant of approvals she stated that derivatives will begin in the second half of 2019.
TD Ameritrade’s Managing Director of Forex and Futures, JB Mackenzie said:
“We expect we will have customers interested in participating. The digital asset economy has been developing so much over the last nine months and investors are crying for a regulated, transparent platform.”
Recently, Bakkt a cryptocurrency platform announced by the New York Stock Exchange’s Intercontinental Exchange [ICE] also announced a physically delivered Bitcoin futures contract. Bakkt is set to be launched in November 2018, which, at present, is the most awaited launch in the cryptocurrency market.