Firm attached to SBI Group obtains approval to offer OTC derivatives in US

A prominent Japanese Financial firm, SBI group, has revealed plans to enhance its services and business partners for the digital assets market in the US. The International financial institution aims to venture into the trading of virtual assets derivatives in the United States. 

The group disclosed that one of the firms it had stakes in, Clear Markets North America Inc., had gotten an operational license in the country. The firm, a subsidiary of Clear Markets CM, has obtained a license from the Commodity Futures Trading Commission (CFTC). The firm will provide physically settled over-the-counter (OTC) virtual assets derivatives with the license. 

SBI added that the license is a first-of-its-kind issued by the regulatory body’s Swap Execution Facility (SEF) stipulations. Clear Market is prominent in crypto for creating numerous virtual trading outlets. The firm assisted SBI Alpha, the creator of the SBI group virtual market, in creating its trading platform. The firm has conducted a series of testing transactions of its new trading platform. 

Additionally, Clear Market is preparing to inaugurate its OTC virtual assets derivatives offering. The initiative will come with USD/BTC features for institutional investors. Also, the firm intends to enhance the products on its platform as it finds its feet in the industry. Meanwhile, SBI described the license as a vital development for the virtual assets industry in the United States.

The group described how it takes much effort and time to obtain a license for handling crypto assets. SBI further indicated that the approval by the CFTC will help build SBI’s presence in the market.

However, the recent approval by the CFTC is an attempt to enhance its influence over firms that offer virtual asset services. Before now, there has been a controversial debate over the legitimacy of the CFTC and the Securities and Exchange Commission. Though, a bill by Senator Lummis attempts to clearly define the authority of the two bodies over firms in the crypto space. The SEC aims to have well-detailed regulations to see the two regulators work hand-in-hand.

The ongoing lawsuit between Ripple Inc. and SEC highlights the confusing powers between the SEC and the CFTC. Ripple is challenging the SEC’s authority to oversee and sanction its market activities. Expectations are high on the proposed bill to end the confusion between the two regulators. However, the CFTC has urged lawmakers to make laws that will give it more powers to perform its oversight functions. Specifically, the regulators want authorities to have a prominent role in monitoring derivatives and virtual assets labeled as commodities.


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