FTX’s ‘easy-access’ clearing stokes fears over runaway risk

Crypto exchange will auto-liquidate underwater positions, which critics say could fuel a death spiral in prices

As the assorted celebrities and bitcoin bros made their way home from the glitzy Crypto Bahamas event last month, and the scene-shifters began dismantling the stage that hours earlier had hosted Bill Clinton and Tony Blair, questions still mounted.

Cryptocurrency exchange FTX, which held the event, was proposing a radical new clearing model that would allow retail investors to bypass clearing banks and gain direct access to crypto futures clearing. Sam Bankman-Fried, founder of the exchange

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Calibrating interest rate curves for a new era

Dmitry Pugachevsky, director of research at Quantifi, explores why building an accurate and robust interest rate curve has considerable implications for a broad range of financial operations – from setting benchmark rates to managing risk – and hinges on…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here