Refute CME CEO SBF's defense of FTX's new "liquidation model" in Congress

FTX Report to... In March  CFTC The proposal , Replace traditional brokers with automatic clearing （FCMs）, In response to this proposal , Yesterday, the big guys in the commodity futures industry gathered in Congress to debate . What exactly did they say ？

House Agriculture Committee 5 month 12 Hold a hearing on 「 Market role change ： Trends and trends in clearing models  FTX Proposal for 」, Invite senior executives of the derivatives industry to come together , in the light of  FTX Proposed in March  CFTC Debate the proposal . Include  CME Chief Executive 、 Intercontinental trading platform （ICE） The chief executives were present to express their opinions .

According to the  FTX Announcement on the policy website ,FTX Want to ask the customer to deposit collateral in the account , The system will use  30 Second is the unit of time , Rolling calculation of margin position . If the margin ratio is too low ,FTX It will start clearing user sites in a few seconds .

For this proposal , Be responsible for supervising  CFTC Several members of Congress expressed their distrust of the encryption industry at the hearing , Even mentioned  UST（TerraUSD） The recent chaos .

Chairman of the House Agriculture Committee  David Scott Think  FTX Proposal for 「 Probably （ For the financial system ） Is a serious threat 」.

CME Chief Executive ： It's a disaster for the U.S. economy and investors

The world's largest derivatives trading platform CME The CEO of  Terry Duffy Think , If the proposal passes , That would be a disaster for financial markets .

「 The risk of using this clearing model is quite high , The consequences of these products can be a disaster , And this risk is not limited to encrypted goods , Because once the proposal is passed , This model can be used for other goods .」

Terry Duffy The main concern is , Once the proposal is passed , This clearing model may be applied to other commodities , This increases systemic risk .

In favor of  Terry Duffy There are also comments on the intercontinental trading platform （ICE） The CEO of  Christopher Edmonds as well as  CFTC Former acting chairman  Walt Lukken.

Their concerns are not groundless .

If this model is only in  FTX Upper use , And limit encrypted goods , The risk is controllable . Once extended to other commodities and other trading platforms , Then you need to consider the clearing speed of the counterparty 、 Body mass .

SBF： The proposal will bring innovation , Bring liquidity back to the United States

FTX Founder and CEO Sam Bankman-Fried explains ,FTX By requiring traders to provide collateral in advance , To reduce systemic risks . From the perspective of risk management , This way of liquidation is more conservative than the traditional way , Moreover, blockchain technology can be more efficient in clearing .

「 We believe that （ This proposal ） Will bring competition and innovation , Will bring liquidity to the US market , It also provides more choices for American users . We are  FTX.US Our derivatives clearing model is more conservative than anywhere else in the world , The systematic risk is well reduced , Enhanced protection mechanism .」

in the light of  CME and  ICE The chief executive's concerns ,SBF Then reiterate , There is no plan to launch 「 Non digital assets 」 The contract of .

「 We have no plan to issue contracts other than digital assets in this clearing mode in the short term . I'm not lying , I really mean .」

in addition ,SBF It is also acceptable to have additional restrictions , But he did not agree that  FTX This model is always limited to trading digital asset contracts .

You can imagine seeing , If the proposal is passed , Although in a short time, this clearing model will only be used to encrypt assets , But if this liquidation method is stable in the future , It will also be used in other goods , And this will also bring competition to the U.S. futures market , At present, all trading volume of commodity futures is concentrated in  CME as well as  ICE above .

On the other hand , at present  95% The liquidity of encrypted asset transactions is outside the United States . If this proposal is passed , Then it is equivalent to creating a year-round trading environment in the United States , For the United States , It's a pretty good strategic consideration .

CoinFund Co founder  Christopher Perkins Solidarity  SBF, He thinks if  FTX The proposal passed , Entrepreneurs will be authorized to create cryptocurrency businesses in the United States , Because most of the innovation now takes place outside the United States .

Summary

Both sides have their own insistence and reasons .

against  FTX The of the proposal believes that the technical problems need to be solved , In case something goes wrong , Will affect the operation of the market ; Square believes that  FTX The proposal brings innovation , And from the perspective of liquidation risk alone ,FTX Our proposal is more conservative . what's more , This encourages innovation , And can bring the transaction volume of cryptocurrency back to the United States .

Like congressman  Sean Patrick tell  SBF That way. ：「 You gave a cool idea , Many people are also excited about your idea . But they （ People in the derivatives industry ） Hate your idea , This should be understandable , After all, this idea has had an impact on their business . Let's face it , Now it's a mess .」

On the whole ,FTX The proposal is in the encryption industry , Even the derivatives industry may develop an innovative pattern . at present  CFTC The proposal has not yet been adopted , But this month  25 A round table will be held on the th , Invite industry people 、 scholars 、 Participate in public welfare groups .