FTX strives for CFTC permit for derivative proposal
FTX strives for CFTC permit for derivative proposal
- ftx suggests having individual investors deposited directly instead of going over a broker
- The CFTC is currently checking FTX's proposal and evaluates public comments
The cryptocurrency exchange FTX strives for the approval of the Commodity Futures Trading Commission (CFTC) in order to enable individual investors to use derivatives to place prayed bets on Bitcoin Wallstreet Journal for the first time on Wednesday.
The regulatory authorities are currently examining the proposal and could make a decision this year. If this were approved, this would mean that investors could act directly with the cryptocurrency exchange led by Sam Bankman-Fried, instead of going through a broker, which could fundamentally change the infrastructure and the operation of the derivative markets.
The proposal from FTX has triggered resistance in both competitors and Wall Street companies. Terrence Duffy, CEO of Chicago Mercantile Exchange (CME), said during a hearing before the US Congress in May that the step would take a "market risk". The CME offers a Bitcoin derivative product to compete with the offers of FTX.
In March, the CFTC a Please send public statement with regard to the proposal from FTX for a changed registration of clearing organizations for derivate and received comments, including concerns about customer protection.
Dennis Kelleher, co -founder, president and CEO of the non -profit organization Better Markets, In a letter that the CFTC must ensure during the evaluation that "the protection of customers and market participants - and the limitation, if not reducing systemic risks, remain the most important concerns".
"We believe that all investors should be available to the data, educational instruments and a number of financial products so that they can make the best possible decisions for themselves," an FTX spokesman told Blockworks.
Chris Bae, CEO of the digital asset trading company Enhanced Digital Group, told Blockworks that it was "inevitable" that more sophisticated trade strategies such as the use of derivatives are created when the cryptoma market becomes mature.
"We have seen that institutional demand for structured products and derivatives is used to better navigate through the current market cycle, so it is only natural that the private customer market will follow," he said.
"The fortune of small investors deposited on these platforms should be absolutely superior to the shareholders of new or old," said Bankman-Fried last Thursday in an interview event at the Harvard Business School Club in New York and referred to the rescue train of his company to Krypto credit from Blockfi and Voyager.
Casey Wagner contributed the reporting on this story.
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The contribution FTX is looking for CFTC permit for derivative proposal is not a financial advice.
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