What Was FTX US Derivatives?

FTX U.S. Derivatives was a digital currency futures and options exchange and clearinghouse regulated by the Commodity Futures Trading Commission (CFTC). After its parent company, FTX, declared bankruptcy in 2022, it was one of the few properties that were not a part of the bankruptcy proceedings. The company remains operational today but is under new ownership and a different name. The exchange is now LedgerX, and it is owned by Miami International Holdings (as of May 2023).

The exchange offered physical settlements of all contracts, block trading, and algorithmic trading opportunities for institutional investors. It also allowed direct access for all traders.

Understanding FTX US Derivatives

FTX U.S. Derivatives was the first exchange to offer cryptocurrency contracts in the U.S. using fractionalized portions of cryptocurrency. Contracts for bitcoin were called mini-contracts, and ether contracts were called deci-contracts. These fractional contracts enabled investors to make granular trades and allowed for scalability as the markets fluctuated. FTX U.S. Derivatives was registered with the CFTC as a Designated Contract Market, Derivatives Clearing Organization, and Swap Execution Facility.

In October 2021, FTX U.S. acquired LedgerX, which changed its name to FTX U.S. Derivatives. FTX U.S. Derivatives offered cryptocurrency futures, options, and swaps—all of which were physically delivered instead of 澳洲幸运5官方开奖结果体彩网:cash-settled.

In November 2022, FTX declared bankruptcy after figuring out it had run out of liquidity due to customer withdrꦍawals. Over the years FTX operated, it was suspected that exchange customers had billions of dollars stolen in a scheme led by Bankman-Fried. Its founder, Sam Bankman-Fried, stepped down as CEO. He was charged with wire fraud, conspiracy to commit wire fraud, securities and commodities fraud, and conspiracy to commit money laundering.

FTX U.S. Derivatives, however, was not a part of its bankruptcy proceedings. The exchange rebranded as or reverted to its old name, Ledger X, and was then purchased by Miami International Holdings in May of 2023.

Futures Trading

Like a regular 澳洲幸运5官方开奖结果体彩网:futures contract, the company's cryptocurrency futures contracts allowed investors to buy or sell at a predetermined price and time in the future. Contract sizes depended upon the cryptocurrency. FTX U.S. Derivatives offered contracts💙 for the current and follo𓆉wing month and two quarterly settlements.

Swaps

The swap contracts from FTX U.S. Derivatives offered investors an inexpensive way to buy or sell cryptocurrency. All futures and swap contracts were fully collateralized. A service for institutional investors allowed for the direct negotiation of 澳洲幸运5官方开奖结果体彩网:block trades, with FTX U.S. Derivatives acting as the clearinghouse.

The Bottom Line

FTX U.S. Derivatives was an exchange owned by FTX, the cryptocurrency exchange owned by Sam Bankman-Fried. Bankman-Fried was charged with and found guilty of several financial crimes after FTX declared bankruptcy in 2022. The exchange is now owned by Miami Holdings International and is named LedgerX once again.