CME Group’s CEO, Duffy, warns of systemic risk from new crypto ‘perps’
Duffy said perps can use leverage of up to 50-to-1 and warned the CFTC’s fast approval could expose retail investors to losses.
- On Thursday, CME Group CEO Terry Duffy warned that U.S. regulators are creating systemic risk by approving perpetual cryptocurrency futures, calling the products a "disaster waiting to happen."
- These perpetual futures, or "perps," allow traders to maintain positions indefinitely while permitting high degrees of leverage—often as much as 50-to-1—enabling investors to amplify market exposure.
- Duffy criticized the Commodity Futures Trading Commission's approval process as bypassing a "full review" for a "novel and complex" instrument, with Coinbase and Kalshi receiving clearance last month.
- CME, CBOE, and New York Stock Exchange parent Intercontinental Exchange faced share selloffs this week as investors worry the decision creates a major new competitive threat for incumbent exchanges.
- Despite the concerns, Duffy noted that institutional demand for these risky products remains limited, with 85% to 90% of CME's business institutionally driven.
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CME’s Duffy Voices ‘Grave Concerns’ With New Perps Contracts
Terry Duffy, the chief executive officer of CME Group Inc., said he is “very concerned” about the rise of so-called perpetual futures, an increasingly popular kind of financial contract that recently won key US regulatory approval.
CME Group's CEO, Duffy, warns of systemic risk from new crypto 'perps'
CME CEO Terry Duffy calls perpetual futures a 'disaster waiting to happen'
The rapid approval of perpetual futures could destabilize markets, posing risks to retail investors and challenging traditional exchanges. The post CME CEO Terry Duffy calls perpetual futures a ‘disaster waiting to happen’ appeared first on Crypto Briefing.
CME CEO Terry Duffy Warns Crypto Perps Could Backfire
CME Group CEO Terry Duffy warned on June 4 that the CFTC approval of perpetual crypto futures creates systemic risk for investors. Shares of major U.S. exchange operators have already sold off on fears that perps could expand beyond crypto into equities and commodities. The CFTC Opened the U.S. Perps Market on May 29 The Commodity Futures Trading Commission approved the first U.S.-regulated perpetual futures contract offered by Coinbase and Kals…
CME CEO Terry Duffy Calls US Crypto Perps 'a Disaster Waiting to Happen'
CME Group CEO Terry Duffy publicly warned that newly approved US-regulated perpetual futures contracts are "a disaster waiting to happen," comparing the current environment to the buildup ahead of the 2008 financial crisis and saying excessive leverage could wipe out retail traders who do not... Read the full story at The Defiant
CME CEO Terry Duffy warns against the first crypto perpetual futures approved in the US. The products could expose retail investors to high risks. Source: BTC-ECHO
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