In case you missed the big news Monday, the CFTC approved LedgerX as a derivatives clearing organization. Miami International Holdings, or MIH (parent company of MIAX), a partner and investor in the crypto exchange, put out its press release regarding the approval Wednesday night.
The key takeaway from the release is a pretty big “Whoa!” stemming from this one-off line regarding MIH’s licensing agreement with LedgerX: “MIH secured similar rights for securities to be listed on its MIAX Equities Exchange, once launched.” An equities exchange? There is not much information out there regarding this proposed endeavor. All the web yields is a trademark filing from 2016 for “MIAX Equities.” (Note: MIH has not yet responded with a comment as of publishing time. This story will be updated with that information once received.)
Other notable bits shed quite a bit of light on the MIAX family’s future. For one, MIAX Technologies is exploring tech support and service for LedgerX. Even more important, one of the stipulations of Miami’s investment in Ledger was exclusive 10-year rights “to license equity or fixed income products related to digital currencies that are developed by LedgerX and to develop its own proprietary equity or fixed income derivatives products based on such LedgerX products to be listed on MIAX Options or MIAX PEARL.” (That part is when the MIAX Equities Exchange got the mention.)
And there is one angle I neglected in my blog earlier this week: the CFTC connection.
Paul Chou, president and CEO of Ledger Holdings, was appointed to the CFTC Technology Advisory Committee in January 2016; Mark Wetjen, former CFTC commissioner now with DTCC, sits on the board of Ledger Holdings; Ananda Radhakrishnan, formerly the CFTC’s Director of the Division of Clearing and Risk, sits on the LedgerX board; and James E. Newsome, former CFTC chairman (among other notable roles), is also on the board.
So, yeah, they must be pretty tuned-in to the regulatory landscape over there.