FTX.US Derivatives Seeks CFTC Approval to Clear Margin Trades Directly for Customers

The company says the change would allow customers to assess and respond to derivatives risks in real time.

AccessTimeIconMar 10, 2022 at 5:43 p.m. UTC
Updated May 11, 2023 at 4:03 p.m. UTC

FTX.US Derivatives has asked the Commodity Futures Trading Commission to allow the trading platform to clear margined derivatives trades directly for customers.

In a tweet thread on Thursday morning, FTX.US President Brett Harrison explained that FTX U.S. Derivatives’ current derivatives clearing organization license requires full collateralization of derivative positions through an intermediary. FTX’s application seeks to amend that to allow for direct-to-consumer margined derivatives trading for retail and institutional customers.

The change would allow derivatives risks to be “transparently assessed and mitigated in real time” because of FTX’s almost continuous setting of margin levels, Harrison said.

“As market-moving news over the last two weeks has demonstrated, large amounts of time between margining periods causes risk to build up in the system, resulting in market swings at next open and lack of clarity over participants’ ability to cover their capital requirements,” Harrison wrote.

The CFTC has acknowledged FTX.US Derivatives' request and asked for public comments to be submitted on or before April 11.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Author placeholder image

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.