Unchained FTX Wants to Compete With CME -- Here's Why It's a Big Deal - Ep.346
Apr 29, 2022
Chris Perkins, president of CoinFund and a veteran of traditional finance, shares insights from the Crypto Bahamas conference and discusses FTX.US's groundbreaking proposal to directly trade crypto derivatives in the U.S. He delves into the challenges faced by traditional financial markets and the potential benefits for retail traders. Perkins also highlights how FTX’s acquisition of LedgerX empowers this shift, and how this move may disrupt regulatory norms while challenging established players like CME in the derivatives landscape.
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Chris Perkins's Background in Derivatives
- Chris Perkins discusses his background in traditional finance, including his time at Lehman Brothers during the 2008 financial crisis.
- He highlights his involvement in the subsequent Dodd-Frank regulations and the resulting centralization of the derivatives industry.
Centralization in Traditional Finance
- Traditional financial markets' plumbing led to increased centralization after the 2008 crisis due to a lack of technological alternatives.
- This centralization pushed crypto derivatives trading overseas, hindering US innovation.
FTX's Decentralized Proposal
- FTX proposes a decentralized model for crypto derivatives trading, eliminating intermediaries like banks.
- Individuals can directly interact with the clearinghouse, changing the traditional risk socialization approach.
