The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
CAPITAL MARKETS

CFTC considers FTX proposal for direct clearing of crypto derivatives

A new approach to crypto derivatives could signal big structural shifts for traditional financial derivatives away from intermediaries and central clearing.

bitcoin-g0fcfb2a6b_960.jpg

As investors watch bond and equity markets fall, some are doing better than others. On April 27, the CME reported to its shareholders that average daily volume (ADV) in futures and options in the first quarter of 2022 was 19% higher than in the same period in 2021, with quarterly equity index volume up 30% to record levels.

ADV also grew 21% in the bigger interest rate derivatives markets. And the Chicago exchange gathered a record $152 million in quarterly revenue just from selling and licensing market data.

Volatility is good, as long as it stays moderate.

“With the backdrop of ongoing geopolitical uncertainty, evolving central bank policies, inflation, supply-chain constraints and other economic challenges, risk management has never been more important,” Terry Duffy, chairman and chief executive of the CME, told analysts.

Risk management has never been more important
Terry Duffy, CME
Terry-Duffy-CME-2022-758.jpg

While the Nasdaq is in a bear market, having fallen 22% over the first four months of this year, CME shares are down just 2.7%.

But there’s a dark cloud looming on the horizon.

FTX US, the US subsidiary of FTX, the three-year-old crypto exchange that hit a valuation of $32 billion in a series-C fund raise in January (which puts it ahead of the present market capitalization of Coinbase), has applied to the Commodity Futures Trading Commission (CFTC) to allow a radical change in crypto derivatives markets that could also signpost a new structure for the conventional futures and options world.

FTX

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree