US crypto exchange Coinbase has just announced during the international futures industry conference in Boca Raton, Florida, US, that it intends to develop a derivatives unit, The Block has reported.
During the presentation, the company has identified three key areas. The first of these is the creation of a futures commission merchant (FCM). Recall that in September 2021, Coinbase submitted an application to the NFA to register Coinbase Financial Markets. However, it has not yet been approved.
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The second key area is the creation of a single market platform (Designated Contract Market, DCM). To this end, Coinbase Derivatives will be positioned as "an advanced low-latency trading platform and connectivity to major retail brokers and market makers."
Finally, the company also envisages connecting to the services of Normal Clear, a derivatives clearing organization that is part of Deutsche Börse Group. In November 2020, this organization received the approval from the CFTC.
According to Coinbase representatives, the exchange is in talks to connect brokers, market makers and futures intermediaries with Coinbase Derivatives.
The exchange is awaiting CFTC approval for Coinbase Derivatives' broad product line, which Coinbase says will "meet the needs of institutional and retail customers."