FTX, one of the largest cryptocurrency exchanges in the world, offers crypto trading services to residents. FTX has now applied for a license to the Commodity Futures Trading Commission (CFTC) for both clearing and intermediation between counterparties in leveraged derivatives transactions.

According to Barron's report, Goldman Sachs could provide a number of benefits as part of a possible collaboration with FTX, including direct futures trading, enrollment of clients and logging into the exchange. Because Wall Street banks such as Goldman Sachs continue their activities as companies that act as intermediary institutions for futures transactions. The head of FTX.US, Brett Harrison, said in an interview with Barron's that Wall Street banks are welcoming the crypto exchange's offers.

FTX

While the CFTC believes that FTX's proposal to act as a derivatives broker should be reviewed, the proposal was viewed as a threat by the brokerage industry and the US Congress is not welcoming. Therefore, even if Goldman or other Wall Street brokerages integrate some trading services with FTX, it seems likely to get stuck in the regulatory hurdle. Also, the U.S. Futures Industry Association reacted to FTX's proposal. The association said on May 12 that FTX's proposal was "potentially risky" and wrote a letter to the CFTC saying it "could increase financial instability at a time of high market volatility".

FTX, on the other hand, believes its integrated model will improve market stability. The company holds client collateral and says it calculates margin requirements every 30 seconds and automatically liquidates positions as needed, rather than waiting overnight.

goldman sachs

Australia's first cryptocurrency ETFs do not attract attention

Australia debuted the first exchange-traded crypto investment products linked to Bitcoin and Ether last month. It seems that investors do not show much interest in these investment products.

The three ETFs, CBTC, EETH and EBTC, launched on May 12, have been experiencing a decline in trading volumes since they started trading. The Cosmos Purpose Ethereum Access ETF (CPET), which started trading on Tuesday, saw only 2,073 shares change hands in its first day.