SBF: Supports Knowledge Tests for Retail Derivatives Traders

FTX CEO SBF said he 100% agrees with mandating disclosures and knowledge tests for all Future Commissions Merchants (FCM) and Designated Contract Markets (DCM) who face retail traders, adding it could make sense. He added however that it doesn’t necessarily make sense for the disclosures and tests to be specific to cryptocurrencies, suggesting these should apply to all derivative products. DCMs are CFTC-regulated derivate exchanges on which products such as options or futures are offered which can only be accessed through an FCM, which accepts or solicits buy and sell orders on futures or futures options contracts from customers.