Mr. Brett Harrison, president of the FTX affiliate in the United States of America, is clearing the way for crypto futures trading on the exchange.
The cryptocurrency exchange FTX has quickly risen to the top of the cryptocurrency consciousness in the United States. Consider the company’s long-term agreement to name the Miami Heat arena, as well as the founder, Sam Bankman-Fried, who appears frequently in the media.
However, many of FTX’s financial products, notably the well-known derivatives products that gave the company its name, are not available to consumers in the United States, who must instead utilise its affiliate, FTX.US.
FTX.US President Brett Harrison told Decrypt that the company is aiming to rectify this and hopes to offer derivatives trading within a year of launching.
“There are a number of contingencies involved in establishing this business, most importantly approval and support from the CFTC, so the exact timeline is difficult to estimate,” he explained. The Commodity Futures Trading Commission is in charge of overseeing the country’s derivatives markets.
Products that are based on derivatives, such as Bitcoin futures, allow consumers to acquire and sell assets at a predetermined price. It’s true that they provide an opportunity to speculate on cryptocurrency values, but they also provide an opportunity to hedge against risk in unpredictable markets.
To bring derivatives trading to the United States, FTX.US has two possibilities, if it receives clearance from the Commodity Futures Trading Commission: filing for its own licence or purchasing an existing business that already has a licence. His plans for which course to take are still in the early stages of discussion and development, he explained.
Harrison emphasised that even if the idea is implemented, FTX.US will not be identical to FTX in appearance. According to him, “FTX US and FTX are separate companies and these will be entirely separate businesses,” “Any derivatives trading on FTX US will be regulated by the CFTC and will thus involve different requirements (products, margin, etc.) from those on the international side.”
According to Nomics statistics, FTX is one of the top five exchanges in the world in terms of trading volume, having recorded over $11.5 billion in transactions in the last 24 hours. FTX.US, on the other hand, has amassed a total of $220 million in the same time period.
