Shearman & Sterling LLP | Financial Regulatory Developments Focus | <span ><font >US Commodity Futures Trading Commission Grants SEF and DCO Registration to LedgerX LLC</font ></span >
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  • US Commodity Futures Trading Commission Grants SEF and DCO Registration to LedgerX LLC
    07/06/2017
    The U.S. Commodity Futures Trading Commission issued an Order of Registration to LedgerX LLC (LedgerX) granting their request to register as a Swap Execution Facility (SEF). As a result, LedgerX becomes the 25th SEF registered with the CFTC.  The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 authorized the creation of SEFs, which are under the CFTC’s jurisdiction and function as platforms for the trading of swaps.

    In addition, on July 24, 2017 the U.S. Commodity Futures Trading Commission also announced that it has issued an order granting LedgerX registration as a derivatives clearing organization (DCO) under the Commodity Exchange Act.  As a result, LedgerX is permitted to provide clearing services for fully-collateralized digital currency swaps and plans to clear bitcoin options. The CFTC has also issued a staff letter regarding LedgerX’s request for relief from certain DCO regulations and requirements.

    In their press release, the CFTC specifically indicated that these approvals do not constitute or imply a CFTC endorsement of the use of digital currency generally, or bitcoin specifically.

    View LedgerX's SEF registration order.

    View LedgerX’s SEF transmittal letter.

    View
    LedgerX’s order of registration as a DCO.

    View CFTC Staff Letter 17-35.
    TOPIC: Derivatives