Explore
Close
Your acceptance of all cookies will permit robust site functionality. If you don't allow cookies, some features and functionality of OCC's site may not operate as expected. If you do not choose either cookie setting for our site, or if you close this window, this message will continue to display on each page you visit. Cookie settings can be controlled in your Internet browser to automatically reject some forms of cookies. For more details on cookies this site uses, see our OCC Site Cookies page. In addition to using cookies, we retain other information, including your Internet Protocol (IP) address, for the purposes listed in the Privacy Policy.

OCC Comments on FTX Request for Amended DCO Registration Order

In a May 11 letter to the CFTC, OCC commented on the proposal by LedgerX LLC, d/b/a FTX US Derivatives ("FTX"), to offer margined derivatives contracts on cryptocurrencies directly to participants without the benefits of clearing through a futures commission merchant. While FTX styles its proposal as a request for amendment to its order of registration as a derivatives clearing organization ("DCO"), FTX’s proposal may be more fairly characterized as a request for exemption from clearing transactions in the manner contemplated by the DCO Core Principles, CFTC Regulations and international standards set forth in the PFMI Principles promulgated by CPMI and IOSCO. OCC shares the concerns expressed in the comment letters submitted by CCP12 and the World Federation of Exchanges and writes separately to emphasize its concern that FTX’s proposal would “hard fork” the proven central counterparty model in a manner that would lead to greater systemic risk and weaken investor protection.

This web site discusses exchange-traded options issued by The Options Clearing Corporation. No statement in this web site is to be construed as an endorsement, recommendation or solicitation to purchase or sell a security, or to provide investment advice. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of the disclosure document, Characteristics and Risks of Standardized Options. Individuals should not enter into option transactions until they have read and understood this document. To obtain copies, contact your broker, any exchange on which options are traded, or The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 ([email protected]).