The Commodity Futures Trading Commission (CFTC) has received inquiries from derivatives clearing organizations (DCO) or potential DCO applicants seeking to offer clearing of margined products directly to participants, such that participants would not clear through a futures commission merchant intermediary (non-intermediated model).

Today, @cftc extends the public comment period by 30 days on the FTX request for an amended DCO registration order. Let us hear from you. https://t.co/5d4M5lz1Tg

— Rostin Behnam (@CFTCbehnam) March 24, 2022

Currently before the CFTC is a formal request from LedgerX, LLC d.b.a. FTX US Derivatives (FTX) to amend its order of registration as a DCO to allow it to modify its existing non-intermediated model. FTX currently operates a non-intermediated model and clears futures and options on futures contracts on a fully collateralized basis. In its request for an amended order of registration, FTX proposes to clear margined products for retail participants while continuing with a non-intermediated model.

The CFTC is seeking public comment on FTX’s request, including both on specific questions and policy issues raised by use of a non-intermediated model in this manner. The questions are available here.

CFTC recommends potential commenters to review FTX documents at this link as you are considering your comments. Comments may be submitted electronically through the CFTC’s Comments Online process. All comments received will be posted on the CFTC website.  Comments should be submitted on or before April 11, 2022.

Source: CFTC