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With FTX integration, Goldman Sachs is reportedly eyeing crypto

02-Jun-2022 By: Sudeep Saxena
With FTX integration

With FTX integration, Goldman Sachs is reportedly eyeing crypto 

derivatives markets.

The CFTC has urged for more examination of the proposal because it could lead to a monopoly of big companies. FTX has attempted to integrate brokerage services internally to perform trades automatically.

Goldman Sachs, one of the world's most prestigious investment firms, is apparently attempting to integrate some of its derivatives products into the FTX.US crypto derivatives marketplace.

According to Barron's, Goldman Sachs has been in talks with FTX about regulatory and public listing assistance and plans to expand into crypto derivatives by utilising some of its own derivatives tools and services.

US, the US affiliate of global cryptocurrency exchange FTX, is looking to expand its derivatives capabilities by adding brokerage services. Instead of relying on "futures commission merchants," the crypto exchange would be able to handle the collateral and margin needs internally (FCMs).

The US Commodity Futures Trading Commission (CFTC) has solicited public opinions on the crypto exchange's suggested revision. The chief regulatory authority also believes that FTX's proposal should be scrutinised because it would give giant investment banks like Goldman Sachs a monopoly.

According to persons familiar with the issue, the integration of Goldman Sachs derivatives services would allow clients to trade futures directly, introduce clients and operate as an on-ramp to the exchange, or give capital top-ups.

An integrated brokerage model, according to FTX, would help to make the market more stable and free. CEO Sam Bankman-Fried faced multiple concerns about crypto derivatives and FTX's proposal to integrate its own FCM during a recent roundtable session with the CFTC.

On the one hand, the CFTC has requested that FTX's modification request be investigated further, while FTX claims that an integrated brokerage model would allow them to compute margin obligations every 30 seconds instead of waiting until the next day to liquidate positions.

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