CME Group Considers Derivatives Trading

The world’s leading derivatives marketplace CME Group is proposing its plans to provide derivatives trading, following its competitors Sam Banman-Fried’s FTX.US.

According to Wall Street Journal, the CME Group is filing the required paperwork for the registration of futures commission merchants (FCM). If approved, its customers would be able to trade derivatives directly through the exchange instead of third-party brokers like TDAmeritrade.

FTX.US also has the same move when it registered a proposal to provide the service of direct trading derivatives from the FTX platform.

“This is notable and comes as no surprise,” said Christopher Perkins – CoinFund President. “The CME Group has desired direct relationships with clients for as long as I can remember.” 

In May, CME Group CEO Terence Duffy disagreed with FTX’s initiatives. He said in the congressional hearing that “false claims of innovations that are little more than cost-cutting regimes.” At that time, it can be seen both companies are in the same boat in the trading service offering crypto assets and other derivatives.

According to Joseph Guinan, CEO of FCM Advantage futures, the proposal if approved is a big change and a “dramatic concern for every FCM”. The Group aims to set lower fees than other rivals and middlemen in the brokerage space. “Our commitment to the FCM model and the significant risk management benefits it provides to all industry participants remains unwavering.” 

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