Key Takeaways
- NFA approval lendts the startup to offer derivatives brokerage, encompassing both cryptocurrency and traditional markets.
- The firm intends to offer clearing services through regulated partners,
Architect Financial Technologies, led by former FTX US President Brett Harrison, has achieved a significant milestone with its subsidiary, Architect Financial Derivatives, receiving approval from the National Futures Association (NFA) to operate independently as an introducing broker. This regulatory green light opens doors for the startup to venture into derivatives brokerage, encompassing both cryptocurrency and traditional markets.
In a recent interview with Bloomberg Markets, Brett Harrison outlined the company’s primary mission, emphasizing the establishment of regulated entities within the exchange-traded derivatives sector. Harrison, who served as FTX US President from May 2021 to September 2022, has ambitious plans that extend beyond the realm of cryptocurrency derivatives, aiming to enter the broader derivatives market.
“Our main focus is to build regulated businesses within the exchange-traded derivatives space, not limited to crypto derivatives but spanning the entire derivatives landscape,” stated Harrison. This strategic vision highlights Architect Financial Technologies’ commitment to offering a comprehensive suite of derivatives services, covering both cryptocurrencies and traditional financial instruments.
Architect’s trading platform is poised to become a notable player in the derivatives arena, as it prepares to facilitate trading in a diverse range of derivatives on exchanges regulated by the United States Commodity Futures Trading Commission (CFTC). Additionally, Architect Financial Technologies intends to offer clearing services through regulated partners, ensuring compliance and security for its clientele.
A distinctive feature of Architect is its global reach. The startup plans to provide access to over 20 regulated exchanges worldwide, extending its services to qualified customers on a global scale. This approach positions Architect as a versatile player in the derivatives brokerage sector, ready to serve clients from diverse regions.
In January 2023, Architect received a significant funding boost, with reports indicating that Brett Harrison successfully secured $5 million in funding for the startup. Notably, influential investors included the venture arms of industry giants Coinbase and Circle, both well-recognized for their contributions to the crypto and blockchain sectors. This financial backing underscores the industry’s confidence in Architect’s potential to make a substantial impact in the derivatives market.
Brett Harrison’s departure from FTX US in September 2022 preceded the demise of FTX in November. The collapse was triggered by media reports revealing concerning practices, which led to a liquidity crisis, eroded investor confidence, and slowed venture capital investments in the cryptocurrency space.
