The Commodity Futures Trading Commission will have a public debate on disintermediation next month, with FTX’s plan looming large.
On Wednesday, the CFTC announced the May 25 roundtable. Last week, CoinDesk’s Jesse Hamilton broke the news of the conversation.
The position of futures commission merchants, which FTX proposes to eliminate via its proposed model for clearing derivatives, is critical to the discussion. The removal of FCMs would simplify trading by lowering the number of times assets change hands, each of which has its own set of liquidity requirements.
However, it is a distinct method of clearing that has sparked outrage from both progressives wary of financial operations and established financial institutions, including FCMs themselves.
The CFTC notice makes no specific reference to FTX, instead referring to “a number of registered firms [that] have discussed with CFTC staff ideas to provide ‘non-intermediated’ or direct trading and clearing of marginal goods to retail consumers.”
Representative David Scott (D-GA), chairman of the House Agriculture Committee, took aim at FTX’s plan at the end of last month at a meeting with CFTC chairman Rostin Behnam, announcing an oversight hearing on the issue that has yet to appear on the Congressional schedule.
According to CFTC representatives, the agency has not yet compiled a list of invitees.
