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ErisX Makes Case for Ethereum Futures to the United States CFTC

Chicago-based crypto exchange ErisX has documented a remark letter with the United States Commodity Futures Trading Commission (CFTC) in the response of the organization’s demand for criticism on Ethereum (ETH’s) mechanics and market.

The letter, submitted on Feb. 15, puts forward the trade’s conviction that belief that “the introduction of a regulated futures contract on Ether would have a positive impact on the growth and maturation of the market.”

As revealed, ErisX is a reboot of traditional futures market Eris Exchange and is relied upon to start support for spot exchanging Bitcoin (BTC), Ethereum and Litecoin (LTC), as well as contracts, in the second half of 2019, pending regulators’ approval.

The letter contends that “listing and trading Ether futures compliantly on CFTC regulated markets is consistent” with the CFTC’s efforts to encourage “open, transparent, competitive, and financially sound derivative trading markets and to prohibit fraud, manipulation, and abusive practices in connection with derivatives and other products subject to the (Commodity Exchange Act) CEA.”

The CFTC has since quite a while ago discovered that Bitcoin is a commodity, given that it tries to supplant sovereign monetary forms — instead of security, which would bring it under the Securities and Exchange Commission (SEC’s) charge. After significant discussion, Ether also was cleared of a securities classification in June 2018. 

In its conclusion of the present condition of the Ethereum advertise, the exchanges certifies its view that a lack of regulatory clarity has prevented regulated enterprises from entering the sector, bringing about a prevalence of “unregulated or lightly regulated ‘exchanges’ [and] ‘brokers’ [emerging to fill the gap, many of them off-shore.” The associated risks — including price volatility and liquidity fluctuations — are, therefore:

“Not unique to Ether, but [may be exacerbated by] the current fragmented global market structure of trading platforms and ‘exchanges’ with significantly varying degrees of regulatory oversight and operational transparency and integrity.”

ErisX hence fights that standards, CFTC-controlled ETH products would draw more extensive cooperation from institutional performers and business users bringing about  “more robust, liquid, and resilient markets,” better risk management and more efficient, accurate price discovery.

ErisX has this month delegated three veterans from Barclays, YouYube and the Chicago Board Options Exchange to fill executive jobs, having reported the arrangement of ConsenSys’  its board of directors in January.

 

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