ErisX Announces DCO Amendment and Clearing Services
ErisX is pleased to announce that as of November 4, 2020 we have received approval for an amendment to Eris Clearing’s Derivative Clearing Organization (DCO) license that expands our clearinghouse capabilities to clear any futures and swap products on any commodity. Previously, our license only permitted clearing futures on cryptocurrencies.
Our clearinghouse, powered by our in-house built 24/7 real time platform, TCS™, and enabled by our DCO license, now possesses several important distinctions and capabilities not featured with all DCOs:
Fully-collateralized futures and swaps:
- Other commodities
Clearinghouse Membership eligibility for:
- FCMs (with new guidance provided by the CFTC regarding accounting for cryptocurrencies)
- Institutions: Asset managers, crypto mining companies, industrial consumers, payments processors, banks
- Market Makers
- Professional Trading Firms
In addition to our DCO license, ErisX has a designated contract market (DCM) license to operate Eris Exchange, our CFTC regulated futures exchange. All DCMs are obligated to clear through a DCO. Eris Exchange is currently the sole DCM for which our DCO, Eris Clearing, provides clearing services. However, our integrated DCM + DCO technology platform, licenses and operations enable us to offer services to 3rd parties that have innovative commercial ideas that require regulated market infrastructure. By working with ErisX these businesses can reduce their time to market and up front costs, and trust that they are working with a professional team and a world-class infrastructure.
If you’re looking for a partner to help launch your new futures products of businesses, ErisX has much to offer.
ErisX’s Service Offerings:
- Clearing services to other DCM’s
- Listing 3rd Party contracts on Eris Exchange and clearing them at Eris Clearing
ErisX’s Technology Stack:
TME™ high throughput, deterministic, low latency matching engine hosted in a world-class datacenter
- Trading integration via FIX, REST and Websocket
- Desktop and mobile accessible trading UI
- Market data distribution with nano-second timestamp precision
- Colocation connectivity via cross-connect
- Real-time and post-trade market surveillance
TCS™ high reliability web-based clearing engine
- 24/7 movement of fiat funds and crypto assets
- Complete books and records
- Omnibus accounts
- Facilities management
- Files and statements
- Full-featured web-based access to clearing house information via ErisX Member Portal (EMP) and REST API
- Workflow manager including approvals configuration
- Entitlements controls
- Audit log of access
ErisX’s Operational Teams, and Capabilities:
- Client Onboarding
- Client Services
- Market Operations
- 24/7 trading and clearing
- Banking integration for fiat currency with segregated funds compliance
By design, our initial launch phase did not include margin. Our approach is to work methodically, and thoughtfully, to responsibly bring innovation to the market, i.e. put a strong foundation in place and then build upon it. To that end we launched with fully-funded contracts and plan to add margin capability to our clearinghouse in 2021. Adding margin will further extend our capabilities, expanding the scope and utility of the products that we can list and clear.
Professional Team, Professional Liquidity
In addition to our technical and operation capabilities, the ErisX team is composed of forward-thinking industry professionals with deep industry knowledge and experience. We also work with a set of world-class professional market making firms that provide liquidity to our spot and futures exchanges.
We look forward to continuing to add to our capabilities in 2021, and the opportunity to partner with other forward-thinking professionals with innovative business ideas.