Coinbase Applies for a US National Futures Association Membership
- The exchange will need a CFTC license to list crypto derivatives in the country.

The San Francisco-headquartered exchange first revealed its move on Twitter, which can be confirmed from the registry of the US regulator.
“This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms,” the exchange noted.
Today, Coinbase filed an application with the NFA to register as an FCM → Futures Commission Merchant.
This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms. ? Goal: Further grow the cryptoeconomy. — Coinbase (@coinbase) September 15, 2021
According to the regulatory database, Coinbase has applied for the NFA membership on September 15 for its subsidiary Coinbase Financial Markets Inc., whose application is now pending.
Joseph Nikolson, who joined Coinbase in 2018, is the Chief Executive Officer of Coinbase Financial Markets. Nikolson himself has been a FINRA-registered broker for more than 20 years.
A Lucrative Market for Crypto Derivatives
The financial derivatives market in the United States is highly regulated and has kept major international crypto derivatives platforms away from the country. But, now many other crypto exchanges are realizing the potential of the US market and are already making moves to launch crypto derivatives products. Most recently, FTX.US acquired the US-regulated derivatives exchange, LedgerX.
However, becoming an NFA member is not enough to list derivatives products. In addition, Coinbase has to acquire a license from the Commodity Futures Trading Commission (CFTC), which oversees the US derivatives markets.
Meanwhile, Coinbase recently revealed that the US Securities and Exchange Commission has threatened to sue the exchange if it proceeds with its proposed launch of crypto Yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner's total return, or portion of income, etc.Understanding Yields in FinanceAt any point in time, all financial instruments compete with each other in a given marketplace. Analyzing yields is simply one metric and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. Conversely, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also dictated by expectations of inflation. Indeed, fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Overall, long dated instruments typically have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. Consequently, the more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner's total return, or portion of income, etc.Understanding Yields in FinanceAt any point in time, all financial instruments compete with each other in a given marketplace. Analyzing yields is simply one metric and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. Conversely, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also dictated by expectations of inflation. Indeed, fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Overall, long dated instruments typically have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. Consequently, the more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. Read this Term services, which according to the regulator violates the local securities markets laws.
The San Francisco-headquartered exchange first revealed its move on Twitter, which can be confirmed from the registry of the US regulator.
“This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms,” the exchange noted.
Today, Coinbase filed an application with the NFA to register as an FCM → Futures Commission Merchant.
This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms. ? Goal: Further grow the cryptoeconomy. — Coinbase (@coinbase) September 15, 2021
According to the regulatory database, Coinbase has applied for the NFA membership on September 15 for its subsidiary Coinbase Financial Markets Inc., whose application is now pending.
Joseph Nikolson, who joined Coinbase in 2018, is the Chief Executive Officer of Coinbase Financial Markets. Nikolson himself has been a FINRA-registered broker for more than 20 years.
A Lucrative Market for Crypto Derivatives
The financial derivatives market in the United States is highly regulated and has kept major international crypto derivatives platforms away from the country. But, now many other crypto exchanges are realizing the potential of the US market and are already making moves to launch crypto derivatives products. Most recently, FTX.US acquired the US-regulated derivatives exchange, LedgerX.
However, becoming an NFA member is not enough to list derivatives products. In addition, Coinbase has to acquire a license from the Commodity Futures Trading Commission (CFTC), which oversees the US derivatives markets.
Meanwhile, Coinbase recently revealed that the US Securities and Exchange Commission has threatened to sue the exchange if it proceeds with its proposed launch of crypto Yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner's total return, or portion of income, etc.Understanding Yields in FinanceAt any point in time, all financial instruments compete with each other in a given marketplace. Analyzing yields is simply one metric and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. Conversely, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also dictated by expectations of inflation. Indeed, fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Overall, long dated instruments typically have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. Consequently, the more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner's total return, or portion of income, etc.Understanding Yields in FinanceAt any point in time, all financial instruments compete with each other in a given marketplace. Analyzing yields is simply one metric and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. Conversely, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also dictated by expectations of inflation. Indeed, fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Overall, long dated instruments typically have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. Consequently, the more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. Read this Term services, which according to the regulator violates the local securities markets laws.