The CFTC granted Eris Clearing, LLC ("Eris") registration as a derivatives clearing organization ("DCO") to clear fully collateralized virtual currency futures. In addition, the CFTC granted Eris no-action relief from various financial requirements to reflect Eris's fully collateralized clearing model. Under this model, participants are required to post sufficient eligible collateral to cover the maximum potential loss on a contract prior to execution of the transaction. As a result, the CFTC granted Eris relief from certain stress testing, risk management and financial reporting requirements otherwise applicable to DCOs under Part 39 of the CFTC Rules.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
