Digital Markets ATS Inc. and 4C Clearing Corp. announced Tuesday they will seek approval from regulators in early 2019 to launch an alternative trading system for digital assets.
The platform would enable investment dealers to provide their retail clients with access to digital assets in their existing accounts, without the need to move funds out to unregulated entities, the firms say in a release. “This will for the first time allow retail clients to hold eligible digital currencies such as Bitcoin and approved [securities token offerings] in the same account as stocks, bonds, ETFs and mutual funds,” said the firms.
Under their plan, Digital Markets ATS would be registered as an IIROC dealer and as an alternative trading system, and 4C would be recognized as a clearing agency or an exempt clearing agency, authorized to clear, settle and provide custody for digital assets. “We intend to discuss with IIROC and the OSC regarding how market surveillance will be conducted,” the firms said in the release.
“The support and positive momentum we have experienced from the regulated investment dealer community has propelled this project forward,” said Laurence Rose, co-founder, president and CEO of both Digital Markets ATS and 4C, in the release.
“Providing regulated investment dealers with a safe and secure platform to get involved in the digital asset market, and with proper market surveillance, will allow their customers to have trust and confidence in their digital asset transactions in a way that is not currently available in the marketplace,” he said.
The firms hope to start trading by the end of 2019 or early 2020.