IT HAS BEGUN. Yup, bitcoin options and swaps are here. Ta Da!! LedgerX is the first regulated crypto derivative exchange to be able to offer these products and although it is pretty much being tried by institutional traders it will be soon be on everybody's trading platform. Oh, did I mention they did $1M notional value in the first week? Well, they did. Bitcoin primarily, but others coming soon. THIS is big and when the CBOE gets bitcoin futures it will be getting even bigger. HUGE come to mind. Congrats LedgerX.
(Bill Taylor/CEO)
"The first regulated cryptocurrency derivative trades have taken place on a U.S. exchange.
In a statement to the press today, bitcoin trading platform LedgerX confirmed rumors that it has already begun trading cryptocurrency derivatives, an offering it first received approval to begin selling to institutional investors in July.
According to figures provided by the company, LedgerX saw 176 swaps and options contracts traded in its first week, with notional values of more than $1 million.
LedgerX CEO Paul Chou said in a statement:
"This week, a new standard is set for transparency, oversight and counter-party assurance. Institutional investors and traders can now rely on a guaranteed clearing and settlement process when transacting bitcoin contracts."
Notably, while the initial LedgerX trades appear to be exclusively in bitcoin, the details of the license give the company the ability to add other assets that qualify as cryptocurrencies.
The company, based in New York, is licensed as both a swap execution facility (SEF) and a derivatives clearing organization (DCO)..."
Full Story at CoinDesk