FTX.US to Acquire US-Based Crypto Derivatives Exchange LedgerX

FTX.US, the United States-based affiliate of the crypto exchange FTX, is set to bring cryptocurrency derivatives services into the country with the acquisition of LedgerX-parent Ledger Holdings Inc. Launched in 2017, LedgerX is a CFTC-regulated digital currency futures and options exchange and Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term.

Announced on Tuesday, the two companies have already executed a sale and purchase agreement for the acquisition deal that is now pending the satisfaction of customary closing conditions.

Confirmation of the deal came only weeks after FTX.US President Brett Harrison revealed the expansion plans of the exchange to bring crypto derivatives trading to US clients.

“This acquisition marks a significant milestone for our rapidly growing US business and is a key part of our strategy to bring regulated crypto derivatives to our US user base,” Harrison said.

“We believe the integration of our technological capabilities, product portfolio and large balance sheet with LedgerX will enhance our ability to provide innovative products to all US cryptocurrency traders.”

Entering the US Crypto Derivatives Market

LedgerX is one of the few crypto venues, which is CFTC-regulated Designated Contract Market (DCM), Swap Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term Facility (SEF) and Derivatives Clearing Organization (DCO). Its services primarily include physical settlement of all contracts, block trading and algorithmic trading for institutional traders, but it also accepts retail clients.

“We’re excited to take this step and work with US regulators to ensure compliance with the existing derivatives licensing regime,” Harrison added.

With the acquisition, the companies will develop crypto trading products for both retail and professional traders. However, the announcement specified that LedgerX’s operations will not see any material impact, and it will continue to provide services to its existing client base.

“US crypto derivatives is an incredibly underserved market, and it took time and resources for us to become a regulated entity under the existing frameworks,” LedgerX Co-Founder and CEO, Zach Dexter added. “FTX.US has taken the view, which we share, that US regulators are ready and willing to partner on innovative products, and it's the responsibility of the industry as a whole to step up and work with agencies like the CFTC.”