Cryptocurrency exchange FTX is seeking the green light from regulators to allow individual investors to use derivatives to place leveraged bets on bitcoin, a move opposed by rivals.
Traditional exchanges and financial-industry groups say the FTX offer could jeopardize the stability of the market. Their concern focuses on a key element of the scheme, whereby investors can directly deal with FTX instead of going through a broker. This approach represents a change in the way derivatives markets have operated over the decades.