---
title: Better Markets Warns CFTC on FTX Auto-Liquidation Proposal
description: 'Crypto carnage’ has shown how meaningful protections for investors, markets, and the public are needed.
---

[Articles Marketmedia](https://articles.marketsmedia.com)

# [Better Markets Warns CFTC on FTX Auto-Liquidation Proposal](https://articles.marketsmedia.com/better-markets-warns-cftc-on-ftxs-auto-liquidation-proposal)

 Written by [Shanny Basar](https://articles.marketsmedia.com/author/shanny-basar) | Jun 17, 2022 12:27:03 PM

President and CEO Dennis M. Kelleher issued the following statement in connection with sending a [letter](https://bettermarkets.org/wp-content/uploads/2022/06/CFTC-Ltr-Behnam-re-FTX-Crypto-6-15-2022.pdf) to Commodity Futures Trading Commission (CFTC) Chair Russ Behnam raising concerns related to the consideration of FTX’s auto-liquidation proposal:

https://twitter.com/BetterMarkets/status/1537780145355952130

“Better Markets sent a letter to Chair Russ Behnam of the CFTC urging him to ensure the process for considering FTX’s [application](https://www.cftc.gov/PressRoom/PressReleases/8499-22) to offer 24/7/365 margining and direct clearing for futures contracts on Bitcoin is transparent, robust, and meaningly inclusive of all viewpoints. The past few weeks of ‘crypto carnage’ has demonstrated how volatile an asset cryptocurrency is and how dangerous it could be if further integrated in the financial system without meaningful protections for investors, markets, and the public.  That is why the CFTC must approach the application of FTX to change its derivatives clearing organization (DCO) registration to allow it to offer direct clearing to customers for futures contracts on Bitcoin with a balanced, deliberative, and transparent process focused on the public interest.

“Unfortunately, such a process was lacking in the CFTC’s May 25th roundtable, as detailed in the [letter](https://bettermarkets.org/wp-content/uploads/2022/06/CFTC-Ltr-Behnam-re-FTX-Crypto-6-15-2022.pdf).  For example, the topics to be discussed and the participants were not publicly released before the meeting, participation was heavily tilted in favor of industry participants, the moderator was not neutral, and the conversation overwhelmingly focused on industry concerns.  The result was a roundtable that left the distinct impression that approving FTX’s application was simply a matter of satisfying some members of the industry who are concerned that FTX’s application would eat into their profits, rather than addressing the various serious risks it poses for investors, markets, and the public.  To ensure that the public has confidence in whatever decision the CFTC makes on the application, we urge Chair Behnam to ensure that future actions on FTX’s application are fully transparent and designed to ensure that the viewpoints of all stakeholders are seriously considered, not just those of the industry.”

Read our full letter [here](https://bettermarkets.org/wp-content/uploads/2022/06/CFTC-Ltr-Behnam-re-FTX-Crypto-6-15-2022.pdf).

Source: Better Markets

[View full post](https://articles.marketsmedia.com/better-markets-warns-cftc-on-ftxs-auto-liquidation-proposal)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Shanny Basar"
  },
  "dateModified" : "2022-07-07T09:34:51.226Z",
  "datePublished" : "2022-06-17T12:27:03Z",
  "headline" : "Better Markets Warns CFTC on FTX Auto-Liquidation Proposal",
  "image" : {
    "@type" : "ImageObject",
    "height" : 445,
    "url" : "https://20473405.fs1.hubspotusercontent-na1.net/hubfs/20473405/Imported_Blog_Media/bis-warns-asset-management-950-Jul-07-2022-09-33-16-65-AM.jpg",
    "width" : 950
  },
  "mainEntityOfPage" : "https://articles.marketsmedia.com/better-markets-warns-cftc-on-ftxs-auto-liquidation-proposal",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60,
      "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
      "width" : 60
    },
    "name" : "Large Hedge Funds To Enter Crypto"
  }
}
```