1

UNITED STATES OF AMERICA 

Before the 

COMMODITY FUTURES TRADING COMMISSION 

_______________________________________ 

In the Matter of the Application of 

Cboe Clear Digital, LLC 

For Registration as a Derivatives Clearing Organization 

_______________________________________ 

ORDER OF REGISTRATION 

On July 1, 2019, the Commodity Futures Trading Commission (the “Commission”) 

issued an order (the “Original Order”) pursuant to Section 5b of the Commodity Exchange Act 

(the “Act”), 7 U.S.C. § 7a-1, granting Cboe Clear Digital, LLC (“Cboe Clear”), then named Eris 

Clearing, LLC, registration as a derivatives clearing organization (“DCO”) for the clearing of 

fully collateralized digital asset futures. 

On November 2, 2020, the Commission amended the Original Order (such amended 

order, the “Second Order”) to permit Cboe Clear to clear fully collateralized futures and fully 

collateralized swaps, in each case without the requirement that the products pertain to digital 

assets. 

On March 15, 2022, Cboe Clear requested that the Commission amend the Second Order 

to permit Cboe Clear to clear futures, both fully collateralized and on a margined basis, as well 

as fully collateralized swaps. The Commission has reviewed the request, along with supporting 

information, and finds that Cboe Clear has demonstrated compliance with the requirements of 

the Act and applicable Commission regulations thereunder. 

In light of the foregoing, IT IS ORDERED, pursuant to Section 5b of the Act, 

7 U.S.C. § 7a-1, that the Original Order and the Second Order are superseded and Cboe Clear is 

granted registration as a DCO, subject to the terms and conditions specified herein: 
   

2

(1) Cleared Products. Cboe Clear is permitted to clear, in its capacity as a DCO: (i) 

digital asset futures on a margined basis for futures commission merchants; (ii) fully 

collateralized futures; and (iii) fully collateralized swaps. 

(2) Treatment of Funds. Funds held in the Member Property Accounts (as this term 

is defined in Cboe Clear’s rulebook) shall be considered member property, as that term is defined 

in the Bankruptcy Code. Cboe Clear shall at all times maintain funds of its clearing members 

separate and distinct from its own funds. 

(3) Insurance. Cboe Clear shall obtain and endeavor to maintain to the extent 

commercially reasonable insurance coverage for theft or loss of participant digital asset 

collateral. 

(4) Risk Disclosure. Cboe Clear shall fully disclose to any potential clearing 

member, in plain language, material risks associated with the clearing of digital asset contracts, 

including, without limitation, the theft, loss, or hacking of the underlying digital asset. The 

disclosure may include a discussion of any mitigating insurance or similar policies so long as the 

scope and limitations of any policy are clearly explained. 

(5) Digital Asset Audit. Cboe Clear shall engage an independent certified public 

accountant to audit Cboe Clear’s digital asset balances and issue an opinion on the accounting 

treatment of digital assets held by Cboe Clear on an annual basis. 

(6) Digital Asset Third-Party Service Providers. Cboe Clear shall obtain and provide 

to the Division of Clearing and Risk, as available to Cboe Clear, a copy of any System and 

Organization Controls (“SOC”) 1 – Type I or Type II and SOC 2 – Type II audit report of any 

third-party service provider used in the custody or storage of any digital assets held on behalf of 

clearing members. 
   

3

(7) Compliance with Certain Statutes. Cboe Clear shall comply with the Bank 

Secrecy Act (31 U.S.C. § 5311 et seq.), the International Emergency Economic Powers Act (50 

U.S.C. § 1701 et seq.), the Trading with the Enemy Act (50 U.S.C. § 4301 et seq.), and the 

Executive Orders and regulations issued pursuant thereto, including the regulations issued by the 

U.S. Department of the Treasury and, as applicable, the Commission as if Cboe Clear were a 

covered “financial institution” within the meaning of 31 C.F.R. § 1010, et seq. 

(8) Compliance with the Act and Commission Regulations. Cboe Clear shall comply, 

and shall demonstrate compliance as requested by the Commission, with applicable provisions of 

the Act, including the core principles set forth in Section 5b of the Act (“Core Principles”), and 

Commission regulations, as may be amended or adopted from time to time. Cboe Clear shall 

fulfill each of the representations it has made to the Commission relating to compliance with the 

Core Principles and Commission regulations. 

(9) Self-Regulatory Function. Cboe Clear shall ensure the performance of all selfregulatory functions required of it as a registered DCO under the Act and Commission 

regulations, including, without limitation: monitoring and enforcing clearing member 

compliance with Cboe Clear admission and continuing eligibility standards; and enforcing 

clearing member compliance with the terms of all other Cboe Clear rules, regulations, and 

procedures. 

(10) New Regulations. Should the Commission promulgate or amend a regulation 

addressing or otherwise affecting any aspect of this order, then such regulation will apply and 

supersede the applicable term(s) in this order. 

(11) Reservation of Rights. This order is based upon the representations made and 

supporting material provided to the Commission by Cboe Clear. Any changes to or omissions in