Chicago Commodity Exchange (CME) Takes FTX in Derivative Transactions!

Chicago Commodity Exchange (CME)by Sam Bankman-Fried cryptocurrency stock market FTX’Following in the footsteps of the company, it presents its own plan to legislators to offer derivatives trading directly to consumers.

After FTX, Chicago Commodity Exchange (CME) Wants Investors to Direct Futures Trading

The Wall Street JournalCME Group, one of the largest exchanges for the trading of derivatives and other financial contracts, has submitted the necessary documents to register as a futures commission company (FCM).

If the exchange’s plans are approved by regulators, investors will be able to trade derivatives directly through the CME instead of through intermediaries.

Usually, individual investors trade derivatives through third-party brokerages (such as TDAmeritrade).

CME’s plan is similar to a proposal to allow investors like FTX to trade crypto derivatives directly on its platform.

Terence Duffy, CEO of CME Group, made claims during a speech at a congressional hearing in May that FTX’s cost-cutting methods were wrong.

Joseph Guinan, CEO of FCM Advantage futures, told the Journal that if the CME’s application is approved, its entry into futures brokerage will change the rules of the game.

He stated that it would be a worrying situation for any brokerage house if the CME sets lower fees than brokers.

A spokesperson for the Chicago Commodity Exchange told the Journal regarding FCMs and risk management:

“Our commitment to the brokerage model and the significant risk management benefits it brings to all industry participants remains unwavering.”