Brett Harrison, president of FTX.US, said that expanding trading products will be critical to the development of the crypto asset market.
In a Twitter thread, Brett Harrison, Head of FTX.US said The US crypto market lacks specific features to help investors diversify and protect their portfolios.
“If one of the main objectives of the financial markets is to allow the expression of ideas and the transfer of risks, The existence of derivatives is also important.“
The US Crypto market will never reach the advancement, maturity, or security seen in the non-derivative equity or fixed-income markets…
FTX petitionTo enable margin trading for derivatives platforms with the Commodities Futures Trading Commission (CFTC) in March.
Harrison said derivatives are essential for allowing institutions to participate in the market. This allows investors to efficiently allocate funds in multiple positions without having to hold the underlying asset entirely.
He also said Direct custody of digital assets is not yet feasible for institutions as of now, which is another advantage of derivatives.
“Tools for effective risk management will remain limited. And crypto won’t attract the institutional liquidity needed to grow.
We believe that our filing with the CFTC to allow direct margin on FTX US Derivatives regulated by FTX US will greatly improve the US crypto derivatives market.”
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