FTX’s proposal to cut out the middlemen in U.S. crypto derivatives has shaken traditional financial firms, but the chairman of the Commodity Futures Trading Commission (CFTC) said the idea could mark an “evolution” in the way markets work.
CFTC Chair Rostin Behnam said he couldn’t comment on when the agency may respond to the proposal, nor which way it might lean, but he revealed how impressed he is with the idea on Friday at the Financial Markets Quality Conference at Georgetown University.
“This is a unique intersection of the crypto space and traditional finance,” Behnam said. “I think this is potentially – and I emphasize the ‘potential’ – another phase in the evolution of market structure, innovation and disruption.”
FTX’s U.S. derivatives operation applied for the ability to clear customers’ margin-backed derivatives contracts directly without traditional intermediaries. Earlier this year, the CFTC held a roundtable talk at which derivatives industry leaders balked at the proposal as dangerous, saying it could spark flash crashes from automatically liquidating customers’ positions without human intervention.
“Non-intermediated futures would be a significant deal; it’s a significant shift,” Behnam said. He went on to describe how crypto natives come into the long-established industry and are surprised by what they find.
“They come into the traditional market space and they’re just a bit puzzled,” he said. “They’re like, ‘Why do you do it this way? We have a way that’s more efficient, where we can have trading execution that’s quicker with better pricing, and we can have settlement and custody in a much better manner.’ That’s where I think we have to learn from each other collectively.”
Behnam equated it with the commodities industry’s 1990s shift from floor trading to the computerized system.
The application process seems to be “going well,” so far, said Zach Dexter, the CEO of FTX US Derivatives, at a separate event on Friday – the Security Traders Association market structure conference. FTX had seen the existing market as “a difficult system to deal with for retail investors” to trade crypto futures, and Dexter said the proposal is “fixing all of that.”
His company is now “walking the agency through” the application “in an incredible amount of detail,” he said.
The initial offer appeared to have been rejected.
The largest endowments have the bigger exposure to alternatives, like private equity, venture capital, and hedge funds. That cushioned the blow of stocks, though next year could be different.
Universal Logistics (ULH) closed the most recent trading day at $33.29, moving -1.57% from the previous trading session.
The convertible debt offering was revealed in a regulatory filing and confirmed by the company.
Bank of Nova Scotia (BNS) closed at $47.15 in the latest trading session, marking a -1.57% move from the prior day.
Starting Monday, October 17, 2022, Albertans will be able to get their annual flu shot from their local community pharmacist. This year the overall health impact from influenza may be greater than previous years, and pharmacists will be rolling up their sleeves and helping Albertans protect themselves and those around them through vaccination. This year's flu program will have two vaccines for pharmacist administration to the public. A standard dose quadrivalent vaccine for those individuals age
Crypto News Weekly Wrap-Up: Oct. sees record crypto hacks; Coinbase partners with Google; Grayscale spars with SEC over Bitcoin ETF, and more
A Brazilian court on Thursday fined Apple Inc 100 million reais ($19 million) and ruled that battery chargers must come with new iPhones sold in the country. The Sao Paulo state court ruled against Apple in a lawsuit, filed by the association of borrowers, consumers and taxpayers, that argued that the company commits abusive practices by selling its flagship product without a charger. Apple said it will appeal the decision.
People are flying again, despite hefty ticket prices. That should fuel airlines like Delta and United. Others face continuing problems, from reduced flights to China to regulatory issues to a serious shortage of pilots.
Readers weigh in on currency fluctuations, MSG Sports, breaking inflation, Illumina’s prospects, and U.S.-China tensions
Inflation and higher interest rates could be here to stay. BofA says changing demographics, deglobalization, and underinvestment in energy production have created a new “regime” for the global economy.
The economist warned in 2006 that the U.S. housing bust would cause a financial crisis. Now he has a new economic doomsday prediction, and it isn't pretty.
MarketWatch Picks has highlighted these products and services because we think readers will find them useful; the MarketWatch News staff is not involved in creating this content. And at a 2009 shareholder meeting, Buffett noted that the first best thing you can do to protect against inflation is to invest in yourself and your skills: “If you’re the best teacher, if you’re the best surgeon, if you’re the best lawyer, you will get your share of the national economic pie regardless of the value of whatever the currency may be,” he said.
Investors seemingly can’t stop trying to pick a stock market bottom, no matter how bad the news—and it continues to backfire. Consider: This past Thursday, September’s consumer inflation report came in much hotter than expected, with the core CPI hitting a 40-year high. The initial response was exactly what you’d expect—the traded down as much as 2.4%—but then it started rallying…and rallying.
Being patient doesn't always pay off.
(Bloomberg) — Tesla Inc. shares tumbled about 50% from their all-time high, amid a broader selloff in the US stock market that has hit growth and technology companies especially hard. Most Read from BloombergRolex Prices to Drop Further as Supply Surges: Morgan StanleyPutin Tried for Years to Stop His Military From Using Western Parts — And Mostly FailedWorld Faces New Threats From Fast-Mutating Omicron VariantsStocks Upended by Inflation Survey’s Sobering View: Markets WrapUkraine Latest: US t
Investors have become more confident that the company can put the past behind it as demand for air travel recovers.
These diversified natural-resource giants have solid balance sheets, earnings, and dividends. All that they need is a rebound in commodity prices.
Everyone is hoping the market might be bottoming and by the recent actions of Bank of America clients, some evidently think the lows must be in sight. Last week, BofA customers splashed out $6.1 billion on US stocks, in what amounted to the third largest inflow since 2008. While the bank has stated it is not as confident the bottom is quite so close, it’s not hard to see why investors feel the time is right to lean into equities. The widespread losses have left scores of beaten-down stocks looki
Last month, the Federal Reserve implemented its fifth straight interest rate hike this year, and its third consecutive hike at 75 basis points, bringing its key funds rate up to the 3% to 3.25% range. The move showed that the central bank is deadly serious about taking on the stubbornly high inflation that has been plaguing the economy since the middle of 2021. The Fed’s turn toward an aggressive anti-inflationary policy may not be hard enough, however, as the September data, released this morni