- Eris Exchange is opening a new institutional trading platform
- The exchange is being backed by DRW Holdings Inc., Virtu Financial Inc. and other
- The exchange will make use of physically delivered futures
A new cryptocurrency market called ErisX is being opened by Eris Exchange LLC. The launch is being backed by investors DRW Holdings Inc., Virtu Financial Inc. and TD Ameritrade Holding Corp.
Investors dipping their feet
Traders will be able to trade Bitcoin, Ethereum, Litecoin, and other currencies on the platform and will receive underlying currency when the contracts expire. This is seen as a move to inspire skeptical traders who don’t want to go all into the cryptocurrency markets due to its unregulated nature.
This new currency exchange is going up against an exchange backed by established industry heavyweights, Bakkt, a Wall-street backed exchange that is due to launch in November. Bakkt has already gotten a lot of hype within the industry due to its promotion of institutional investment as well as its use of existing regulations.
However, ErisX does have quite a bit of muscle behind it in form of TD Ameritrade, Valor Equity Partners, NEX Opportunities, Cboe Global Markets Inc DRW, and Virtu.
“Our retail clients are seeking to access and trade digital currency products in the same way they do with traditional capital markets – through a legitimate, regulated and transparent exchange,” Steve Quirk, executive vice president of trading and education at TD Ameritrade, said.
ErisX will have Thomas Chippas, former head of global quantitative execution at Citigroup, as its CEO and Neal Brady as executive chairman.
In the last few months, there has been more talk about the need for institutional investments in the cryptocurrency industry.
While individual investments have helped push acceptance of cryptocurrency, many feel that bringing in Institutional heavyweights will give the industry new steam.
This has led to the upcoming launch of Bakkt, which was by New York Stock Exchange owner Intercontinental Exchange Inc., and now it seems ErisX is throwing its hat into the ring as well.
How ErisX will work
ErisX will work with physically delivered futures and will self-certify the new contracts with the U.S. Commodity Futures Trading Commission.
The derivatives in question will be reviewed by a clearinghouse that is under review by the CFTC.
Trading is on track to begin the Q2 of 2019 and derivatives trading will begin either in Q3 or Q4.