Bitcoin News- CME posted the registration in August.
- The CFTC hasn’t yet granted FTX clearance organization status for derivatives.
The WSJ mentioned the CME Group, the greatest financial derivatives exchange on the planet, has applied to become futures commission merchant (FCM). Based on WSJ author Alexander Osipovich, CME posted the registration in August and it is “taking cue from [the] crypto rival FTX.”
Your application of CME Group’s FCM registration indicates the exchange may eliminate middlemen like TDAmeritrade, Saxo Bank Interactive Brokers, Robomarkets, and Grandcapital in support of offering derivatives straight to customers.
FTX Yet to obtain Clearance
The CFTC solicited public feedback on FTX’s plan in March. Terry Duffy, chairman and ceo of CME Group, cautioned the FTX move could potentially cause “market risk” inside a letter he sent in the center of May. The CFTC hasn’t yet granted FTX clearance organization status for derivatives.
Based on Duffy’s assessment at that time:
“FTX’s plan’s glaringly missing and presents [a] serious danger to promote stability and market participants.FTX provides implement a ‘risk management light’ clearing regime that will considerably increase market risks by potentially removing as much as $170 billion of loss-absorbing capital in the removed derivatives market, eliminating standard credit report checks, and destroying risk management incentives by restricting capital needs and mutualized risk.”
Based on Osipovich’s report, Advantage Futures’ chairman and Chief executive officer Frederick Guinan believes the modification may be quite dramatic. Osipovich referenced Craig Pirrong, a finance professor in the College of Houston, as he stated that CME’s FCM decision was reply to the FTX proposal the CFTC continues to be deliberating around the matter. Using their philosophical perspective, they’d prefer not to do that, Pirrong stated on September 30.
Suggested For You Personally:
