LucidExchange, a newly conceptualized exchange employing blockchain technology for trading futures and options on commodities, currencies, and equities has announced that after months of development and legal work, the team is formally seeking to be the first distributed ledger based derivatives exchange to receive registration with the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
LucidExchange has a proprietary matching algorithm, that allows individuals to directly trade (peer-to-peer) option smart contracts without the costs and delays associated with trading securities through traditional brokerages
The platform creates unique distributed ledgers for each security sold. Once an individual executes a trade, the LucidExchange system converts their LucidCoin (TRD), the native, tradable, speculative cryptocurrency used within the LucidExchange marketplace into smart contracts that dictate the terms of their position. At the expiration date of the contract, the position is liquidated into the respective percent profit or loss denominated in TRD.
The exchange, which completed a successful beta testing in June eliminates the need for intermediaries, enables instantaneous settlement at maturity, and allows individuals to trade cost-free.
LucidExchange is led by CEO Ephi Zlotnitsky, “who grew tired of the inefficient online brokerage model.” The next step for the team is preparing for their September ICO launch which will offer up LucidCoin (TRD).
Available to be purchased by BTC or ETH, the total supply of TRD will be 10,000,000 coins. During the ICO, a maximum of 40% of TRD or $5,000,000 USD will be sold.
LucidCoin (TRD) tokens can be used to:
- Post margin if an investor has elected to lever his/her portfolio.
- Pay financing fees on leverage.
- Take a trade position via the Lucid marketplace.
The company is planning a 15-day ICO period, the price of TRD will start at $25 USD per coin and will decrease daily by 20%, stopping at $1.25 USD.
Early TRD coin bidders will have the advantage of securing their desired number of TRD coins, while not taking any risk with their offered purchase price since the final number of coins issued will be based on the lowest coin price offered by the time the ICO officially ends.
Regarding the costs of seeking registration, the Lucid team stated:
“We will allocate 20% of funds raised towards our legal team and industry research. One of the primary legal costs we anticipate is filing with the U.S. National Futures Association (NFA), a regulatory arm of the Commodity Futures Trading Commission (CFTC). Filing LucidExchange as a registered broker with the NFA allows Lucid to operate legally within the United States. Our customers can rest assured that they are trading on a legal exchange, that operates under the laws and regulations of the United States.”
A brief timeline of the company’s immediate plans are below:
- During Q4 of this year – Lucid plans to finish development of their proprietary trading platform while awaiting registration with the CFTC and SEC to commence trading.
- Q1 2018 – Lucid anticipates the successful completion of registration with the Commodity Trading Futures Commission and the Securities and Exchange Commission. LucidExchange is opened for cost-free trading. The website is monitored and altered to ensure a modern design and user-friendly interface. The system is constantly tweaked to ensure the tightest spreads and maximum liquidity in the marketplace.
- Q2 2018 – LucidExchange’s standalone mobile platform will be fully developed. The team continues its strategy to deliver a superior trading alternative, positioning the company for long-term success.
More information on the new exchange can be read in the company white paper.