CFTC grants approval to LedgerX to clear derivatives products beyond those tied to crypto

The Commodity Futures Trading Commission said Wednesday that, following the approval of an amended registration order, LedgerX is now allowed to clear products not directly connected to cryptocurrencies.

In the brief statement, the CFTC said that LedgerX "is authorized to provide clearing services for fully-collateralized futures and options on futures in addition to the previously authorized swaps, and will no longer be limited to clearing digital currency products." That represents a notable shift for the company that made its name pitching institutional-focused derivatives based on cryptocurrencies.

According to the amended order of registration, LedgerX requested permission to expand its product scope back in June.

As the amended order further explains: 

"On June 23, 2020, LedgerX amended its request to additionally ask the Commission to remove the “digital currency” limitation in the product scope. The Commission has reviewed the request, along with supporting information, and finds that the requested amendment is consistent with the requirements of the Act and applicable regulations thereunder, but has identified additional terms and conditions necessary to ensure LedgerX’s compliance with the Act and applicable Part 39 regulations."

The full amended order of registration can be found below:

LedgerX Amended Order 09-02-2020 Signed by MichaelPatrickMcSweeney on Scribd