This article comes fromThe Block, by Michael McSweeney and Frank Chaparro

Odaily Translator |

Odaily Translator |

Cryptocurrency exchange Coinbase is advancing its plans to launch a crypto derivatives business in the United States.

Coinbase disclosed details of its derivatives business on Tuesday at FIA Boca, the futures industry conference in Boca Raton, Florida.In January of this year,Coinbase Announces It Will Acquire FairX, a CFTC-Regulated Derivatives Exchange

, the acquisition is expected to close in Coinbase's first fiscal quarter, for an undisclosed amount. The acquisition is a key step for Coinbase to offer crypto derivatives to U.S. retail and institutional clients.

Attending the FIA ​​Boca conference and sharing relevant details with traditional financial professionals are Vishal Gupta, head of the Coinbase exchange, and Neal Brady, co-founder of FairX and senior product director at Coinbase. Neal Brady is also responsible for leading Coinbase Derivatives (formerly FairX).

In the presentation, Coinbase outlined three broad areas of its derivatives business:

The first is Coinbase FCM, its planned futures commission merchant. Last fall, Coinbase applied for membership with the National Futures Association, the main self-regulatory organization for such businesses in the United States. According to the NFA's website, Coinbase's membership is still pending approval.

This is followed by Coinbase DCM. The now-rebranded FairX has long been registered with the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM) and will play a role here. Registering as a DCM means that it can offer futures products in the United States. In its demo, Coinbase described it as a "low-latency advanced trading platform" that "connects with major retail brokers and market makers."Finally, Nodal Clear, a derivatives clearinghouse, is owned by the Deutsche Börse Group as a third party to its business. November 2020,Nodal Clear has been approved by the CFTC

, which can clear contracts for other DCMs.

Looking ahead, Coinbase said in its presentation that it is integrating brokers, market makers and other futures commission merchants (FCMs) into its platform and is working with the CFTC on its planned products. Coinbase will also “develop new crypto futures products to meet the needs of institutional and retail end-users,” according to the introduction.

According to sources with knowledge of its roadmap, FairX (now Coinbase Derivatives) will continue to operate and launch crypto derivatives directly for clients. A broader derivatives offering to Coinbase's user base is awaiting regulatory approval.The development announced by Coinbase on Tuesday may add new life to the nascent U.S. crypto derivatives market. Meanwhile, FTX. US is finding its own path. As reported last week, theCFTCPublic comment is being sought on FTX US Derivatives' request to amend the Derivatives Clearing Organization Registration Order. FTX recently launched FTX Access, a new business unit for institutional investors, providing consulting services, index products, analysis tools, execution transactions and other services.Officially,