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CFTC Chairman Evaluates FTX Derivatives Trading: Potentially a More Efficient Trading System, FTX US CEO Teases Launch on US Stock Market

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CFTC Chairman Evaluates FTX Derivatives Trading: Potentially a More Efficient Trading System, FTX US CEO Teases Launch on US Stock Market

Previously, FTX.US submitted an application to the U.S. Commodity Futures Trading Commission (CFTC) with the intention of promoting 24/7, non-intermediated derivative trading in the U.S. The CFTC opened a public consultation period at that time, and the CFTC chairman also expressed a positive attitude during the hearing, stating, "This will definitely not be the last similar proposal, there will only be more in the future."

CFTC Chairman: Supporting Responsible Innovation

CFTC Chairman Rostin Behnam participated in a House hearing on 3/31 evening, where he noted that FTX.US's proposal is based on novel technology, implying uncertainties, but logically, new technology could allow some isolated retail investors more direct access to derivatives trading.

While he did not explicitly state support for the proposal, he mentioned:

The proposal could bring about more efficient derivatives trading, reduce systemic risks, and I need to foster "responsible innovation," and this idea doesn't necessarily have to be prohibited by the Commodity Exchange Act. Therefore, this issue requires an ongoing, critical public comment period, and we are evaluating the FTX proposal with caution.

FTX.US CEO Brett Harrison and FTX US Derivatives CEO Zach Dexter have continuously emphasized the potential risks of the existing margin trading system. Zach Dexter described the traditional margin model as follows:

The traditional margin model extends the liquidation time by providing additional margin, giving traders more time to repay the loan, effectively expanding credit beyond price risk. In addition to price risk, the process of additional margin also increases credit risk, which is the aggressive operation of the traditional margin model.

Previous reports indicated a strong lineup of FTX US board members, including Jerome Kemp, President of the global bank synchronous clearing platform Baton System, and former CFTC Commissioner and Acting Chairman Mark Wetjen as the regulatory policy head, suggesting a likely entry into the US market.

Furthermore, FTX.US CEO Brett Harrison also announced the upcoming launch of the platform's US stock market and urged users to join the waitlist promptly.