FTX CEO made a speech to many insiders in the futures industry at the CFTC round table meeting

FTX CEO Sam bankman fried held a lot of discussions on non intermediation at the U.S. Commodity Futures Trading Commission (CFTC) Roundtable on Wednesday. He answered questions from 31 industry professionals about ftx The US application, which provides clearing of margin products (including cryptocurrency based products) without a futures commission merchant (FCM) intermediary.
Many participants felt it necessary to mention their investment in innovation and claimed that they did not consider the proposed new technology as “we vs. them”. Joe cisewski of Pantera capital said that at present, only six to eight clearing houses dominate the market, so new competition will not appear. Like many present, he believes that this new trading model needs more regulatory frameworks.
“We don’t know what cryptocurrency margin is,” said Hilary Allen, a law professor at American University. Allison Luton of the Futures Industry Association (FIA) stressed that due to the “core position” of merchants in the system, FCM regulations are prescriptive rather than principle based, and many rules and regulations will have to be revised for the proposed non intermediary trading system.
Christine Parker of coinbase said, “we don’t know what retail traders in the encryption field will design in the market.” When commenting on the company’s experience outside the United States, Parker said that encrypted transactions do not follow the pattern of traditional commodities. She is one of several people who think that overseas options trading is better than American options.
Some also pointed out that the current system deliberately differs from the automation solution proposed by FTX. Lurton et al. Pointed out that the framework of 24-hour clearing already exists, but there is reason not to use it. Allen said that the proposed trading algorithm must deal with unexpected situations, and pointed out: “this is not the role of the algorithm, […] this is the role of regulators.”
Todd Phillips of the center for American progress suggested that the role of CFTC is to ensure that investment products are suitable for consumers. He said that the possible round the clock liquidation “is not something we want retail investors to participate in”. Bankman fried expressed dissatisfaction with the proposal, calling it arrogant, and said that “many people know more about margin trading than those present”.
Robert steigerwald, the moderator of the Federal Reserve Bank of Chicago, later said in a six-and-a-half-hour meeting: “I expect more controversial things to happen.”