CFTC Reportedly Approving Over-the-Counter Crypto Derivatives Trading Products From SBI Group-Supported Platform

The Commodity Futures Trading Commission (CFTC) is reportedly giving the green light for new financial products from the US subsidiary of Clear Markets, an international operator of derivatives trading platforms.

According to Clear Markets stakeholder SBI Group, the CFTC has granted approval for over-the-counter crypto asset derivative products with a physical settlement from Clear Markets North America, the US arm of the electronic trading platform developer.

SBI says that the approval will allow Clear Markets to operate a Swap Execution Facility (SEF), which will offer derivatives trading for US dollar-Bitcoin (BTC) pairs and other products.

The Japan-based financial giant says that its crypto asset market maker, SBI Alpha, is already conducting pilot transactions using the platform.

“This approval is the first case for the Swap Execution Facility (SEF), a financial derivatives trading license in the United States. CM US will first start handling USD/BTC Option, and plans to expand the products offered in the future.”

The Dodd-Frank Act and the Commodity Exchange Act (CEA) require persons who wish to operate platforms for trading or processing of swaps in the US to register as a swap execution facility (SEF) or as a designated contract market (DCM).

Says the CFTC,

“To be registered and maintain registration, a SEF must comply with fifteen enumerated core principles and any requirement that the CFTC may impose by rule or regulation.”

SBI says it takes a long time to obtain approval. The firm says that many crypto asset derivatives trading markets in the US are currently being operated by non-licensed businesses.

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