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BY CNA Team - October 4, 2018

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Eris to offer crypto-backed futures

Eris offering crypto trading and crypto-backed derivatives in 2019
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Eris, a Chicago-based futures exchange, is planning to offer cryptocurrency trading and also derivatives next year.

Eris official Jessica Darmoni told Bloomberg that the exchange is also planning to set up a clearinghouse to certify the trades.

She says that the plans are all subject to the approval of the US Commodity Futures Trading Commission, which is also reviewing the clearinghouse application.

Assuming approvals are granted, fiat trading of cryptocurrencies will begin by the second quarter of 2019 and crypto-backed derivatives will be offered in the second-half of the year.

Darmoni says the exchange will let investors trade bitcoin, ethereum, bitcoin cash and litecoin.

She adds that the futures contracts will be backed by physical cryptocurrencies, in other words, when the contracts expire, investors will get the contracts’ underlying crypto.

The exchange, founded in 2010, just completed a round of funding to back the new ventures. The funding came from both current investors and new ones.

The new investors included TD Ameritrade, a retail brokerage firm. Other investors of the new venture included CMT Digital, Susquehanna International Group, XR Trading, C2 Capital Management and ED&F Man Capital Markets.

NEX Opportunities, Cboe Global Markets, CTC Group Investments, Digital Currency Group, Nico Trading, Pantera Capital and Third Stone Partners also participated in the funding.

Eris’ current shareholders includes DRW, whose Cumberland unit is one of the world’s biggest crypto traders, and Virtu Financial, a high frequency trader.

If approved, ErisX will join the likes of Bakkt, which will be launched in November. Bakkt is a unit of the Intercontinental Exchange, the owner of the New York Stock Exchange.

DRW and Virtu have agreed to be market makers, that is, to provide liquidity on the crypto platform.

Image courtesy of Eris website.

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