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The Commodity Futures Trading Commission on Monday said it had approved an amended registration order for Cboe Clear Digital to remove additional products as a derivatives clearing organization.
The amended order allows Cboe Clear to “provide clearing services for digital asset futures on margin to futures commission traders, in addition to the fully guaranteed futures contracts and fully guaranteed swaps previously authorized,” US regulators said in a statement.
Cboe Digital Exchange, parent company of Cboe Clear, is registered as a designated contract market with the CFTC. The move authorizes Cboe to expand the clearing of futures contracts on crypto assets “while remaining within the structure of the traditional US futures brokerage market,” CFTC Commissioner Christy Goldsmith Romero said in a separate statement.
“The order was accompanied by careful risk mitigation measures implemented by Cboe,” said Romero, adding that the application “starkly contrasts” with one of the FTX crypto exchanges that collapsed “for a disintermediated direct customer market structure that ordered first.”
“I have been vocal about the benefits of bringing compliant crypto activity into regulated spaces to protect customers, but in a way that supports oversight, accountability, transparency and risk management,” said Romero. “Too often in recent years, crypto companies have attempted to take existing business models or market structures in unregulated environments and move them into regulated environments.”
“Cboe has not done that, but rather operates within the parameters of traditional futures market structures and regulatory frameworks,” continued Romero. “It constructively engages my staff and office to address risk-related issues, and implement risk mitigation measures.”
© 2023 Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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