FTX Proposes to Clear Margined Products for Retail03.11.2022
The Commodity Futures Trading Commission (CFTC) has received inquiries from derivatives clearing organizations (DCO) or potential DCO applicants seeking to offer clearing of margined products directly to participants, such that participants would not clear through a futures commission merchant intermediary (non-intermediated model).
NEWS: CFTC seeks public comment on FTX request for amended DCO registration order. Details here: https://t.co/TVEDAERgLO
— CFTC (@CFTC) March 10, 2022
Currently before the CFTC is a formal request from LedgerX, LLC d.b.a. FTX US Derivatives (FTX) to amend its order of registration as a DCO to allow it to modify its existing non-intermediated model. FTX currently operates a non-intermediated model and clears futures and options on futures contracts on a fully collateralized basis. In its request for an amended order of registration, FTX proposes to clear margined products for retail participants while continuing with a non-intermediated model
The CFTC is seeking public comment on FTX’s request, including both on specific questions and policy issues raised by use of a non-intermediated model in this manner. The questions are available here.
CFTC recommends potential commenters to review FTX documents at this link as you are considering your comments. Comments may be submitted electronically through the CFTC’s Comments Online process. All comments received will be posted on the CFTC website. Comments should be submitted on or before April 11, 2022.
+1 we'll comment on this, and appreciate the @CFTC helping work toward some clarity
crypto can be many things: a currency, a commodity, a security, and even non-financial assets like art (NFTs), governance tokens etc
let's work to create more clear tests/boundaries https://t.co/tpUUZnqvZg
— Brian Armstrong – barmstrong.eth (@brian_armstrong) March 10, 2022
Clearing members can now automate and optimise a substantial proportion of collateral movements.
FTX’s proposal would replace futures commission merchants with an automated and centralized process.
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