CME faces competitive threat from onshore perps
The bearish case for CME Group argues that the CFTC's approval of onshore perpetual futures introduces a major competitive threat to its traditional derivatives dominance.
The argument
The speakers noted that CME's unprecedented lawsuit against its primary regulator, the CFTC, highlights the severe competitive threat of allowing US exchanges to self-certify perpetual contracts. This regulatory shift could open the floodgates for onshore crypto perps, potentially diverting massive volumes away from CME's traditional offerings.
The thesis, stress-tested
✓ What validates it
- ✓Court dismisses CME's lawsuit against the CFTC
- ✓Onshore perpetual futures volumes see rapid growth on non-CME platforms
▸ Risks discussed
- ▸CME wins the lawsuit, halting the rollout of onshore perpetual futures
- ▸A new regulatory administration reverses the CFTC's stance on perps
Hear it yourself
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