After FTX.US, CME Group proposes direct derivatives trading: WSJ

After FTX.US, CME Group proposes direct derivatives trading: WSJ

Share

🗳 Fact/FUD

After FTX.US, CME Group proposes direct derivatives trading: WSJ

The Block2 months ago
Published on October 01, 2022 19:52 GMT+00:00edited on October 03, 2022 16:01 GMT+00:00

Share

CME Group is following in the footsteps of Sam Bankman-Fried's FTX.US, proposing to regulators its own plan to offer derivatives trading directly to consumers. 

CME Group, one of the largest exchanges for trading of derivatives and other financial contracts, filed paperwork to register as a so-called futures commission merchant (FCM), according to a report by The Wall Street Journal.

If the exchange's plans are approved by regulators, then traders would be able to trade derivatives directly through CME rather than through brokers. Typically individuals traders trade derivatives through a third-party brokerages like TDAmeritrade. 

CME's plan is similar to FTX.US's proposal to allow traders to post margin and trade crypto derivatives directly on its platform. 

"This is notable and comes as …