Goldman Sachs Plans To Integrate Its Derivatives Products Into FTX’s Crypto Derivatives Offerings

A leading investment bank in the U.S, Goldman Sachs is making efforts to on-board some of its derivatives products into the crypto derivatives offerings by FTX (U.S)

Goldman Sachs held several discussions with FTX over the public listing and regulatory help. In addition, the investment bank also envisions growing its crypto derivatives offering by leveraging some of its own derivatives services and tools.

For the uninitiated, FTX.US is the U.S. subsidiary of FTX, a global crypto exchange. FTX, for its derivatives offerings, aims to provide brokerage services. Now, this will enable the crypto exchange to fulfill the collateral and margin requirements internally instead of relying on “futures commission merchants” (FCMs).

Brett Harrison, president at FTX.US, reveals that they already have access to multiple FCMs devoted to integrating technologically with the exchange. “There are several large ones you can probably name,” Harrison adds. 

On the requested amendment from the crypto exchange, the U.S. Commodity Futures Trading Commission (CFTC) has asked for public comments. According to the chief regulatory body, the proposal of the FTX also summons scrutiny as it will result in a monopoly of large investment banks such as Goldman.

The integration of Goldman Sachs derivatives services will be “ providing capital top-ups for clients, trading futures directly, introducing clients and acting as an on-ramp to the exchange,” disclosed a source familiar with the matter. 

Meanwhile, FTX is confident that an integrated brokerage model would prove to help improve stability and promote liberty in the market. Sam Bankman-Fried, the CEO of FTX, in a recent roundtable discussion with the CFTC, has raised several questions regarding crypto derivatives and FTX’s proposal to integrate its own FCM.

With various European countries as well as the U.S restricting crypto exchanges from offering leveraged trading, the topic of Crypto derivatives trading has been trending for some time now. 

Following regulatory interference, Binance, the popular crypto exchange, has shut its derivatives offerings in several European countries.

Meanwhile, FTX’s amendment demand has led to the CFTC ordering more scrutiny on the exchange. FTX, on the other hand, claims that an integrated brokerage model would help them calculate calculates margin requirements every 30 seconds instead of having to wait for the next day to liquidate positions.

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