FTX made a proposal to directly clear the trades of its derivatives. Customers will get a informal hearing on May 23, according to a person familiar with the Commodity Futures Commission's (CFTC) plan.
The U.S. regulator will invite representatives of the company and others who have a stake in the decision to a public roundtable. The even hasn't yet been announced. The open discussion will invite public commentary from proponents and critics without carrying the force of a hearing.
Chairman Rostin Behnam has said his agency is taking an approach to the application from FTX.US to allow its trading platform to directly clear derivatives that are backed by margin. He suggested the application may be the first of many, and if approved could have major implications.
"This proposal could end up leading to more efficient trading execution, less risk in the system", Benham told lawmakers last month at the House Agriculture Committee, adding that he's required to foster "responsible innovation", and FTX's idea wouldn't seem to violate commodities laws.
The agency has received dozens of comment letters, such as one from the founders of BlockTower Capital. BlockTower Capital argued that FTX's idea "will reduce the over-reliance on the current gatekeepers to trading markets."