The U.S. Commodity Futures Trading Commission (CFTC) has issued an Order of Registration to LedgerX, an institutional trading and clearing platform, granting it registration status with the CFTC as a Swap Execution Facility (SEF).
SEFs are platforms that operate under the CFTC’s regulatory oversight for the trading of swaps. With this recent Order, there now are 25 SEFs registered with the CFTC.
In the official release, the CFTC said that in its review of the LedgerX application and associated exhibits, it found that the Delaware-registered company demonstrated compliance with the Commodity Exchange Act (CEA) and its regulations applicable to SEFs. Under the terms and conditions of the Order, LedgerX would be required to comply with all provisions of the CEA and all requirements in the CFTC’s regulations that are applicable to SEFs.
In addition, the CFTC said:
“LedgerX also must comply with all representations and submissions made by it in support of its application for registration as a SEF, including, but not limited to, its representations that it will not list an intended to be cleared swap until it has a clearing agreement with a derivatives clearing organization registered under Section 5b of the CEA and it will not list a swap that is not intended to be cleared until it submits to the CFTC revisions of its rulebook and other pertinent registration materials, pursuant to the provisions of Part 40 of the CFTC’s regulations, to provide for the execution of uncleared swaps.”
Commenting on the latest development, LedgerX CEO Paul Chou told CoinDesk:
"We are pleased to have received full registration as a SEF from the CFTC for the trading of digital currency derivatives."
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