FTX, a fast-growing crypto exchange serving both the US and global markets, is in talks with Goldman Sachs (NYSE:GS) in regards to crypto derivatives.
While Goldman has been hesitant in the past to move into crypto demand from its customers continues to push the investment bank to offer more crypto-focused services. FTX is one of the most sophisticated trading platforms in the market that caters to institutions as well as retail.
Recently, FTX requested the Commodities Futures Trading Commission (CFTC) allow it to pursue a “Non-Intermediated Model”. The CFTC is currently accepting comments on the possible trading model.
FTX explains that it aims to clear derivatives products that are not fully collateralized through a direct access market for both retail and institutional participants, effectively a decentralized transaction.
Yesterday, CME Chairman and CEO Terry Duffy told CNBC he was opposed to the proposal. Last week on May 25th, the CFTC held a roundtable on Non-Intermediation that included FTX founder had CEO Sam Bankman-Fried. – along with other interested parties – as the agency seeks to better understand how the possible change will impact markets.
According to a report in Barron’s, Goldman is in discussions to “integrate some brokerage services for leveraged derivatives in the U.S.” Additionally, some market participants are warming to the idea – better to join them instead of fighting them. Any change to allow non-intermediation is expected to “shake up the market” but then innovation can be hard and change is inevitable.
Meanwhile, draft legislation aiming to provide bright-line rules for the entire digital asset sector has been circulated. The current language of the bill outlines who regulates what, removing turf battles while giving the industry what they want – a clear path to compliance and legitimization.