CME sues regulator to block perpetual futures
CME Group is legally challenging the CFTC's approval of Kalshi's perpetual futures contracts to protect its dominant position in the US derivatives market.
The argument
The exchange operator argues the regulator violated US law by allowing Kalshi to list 'perps'—24/7 contracts that never expire. CME frames this as an unlawful competitive encroachment on its traditional futures territory.
The thesis, stress-tested
✓ What validates it
- ✓Federal court rulings on the CME v. CFTC lawsuit
- ✓Volume metrics of Kalshi's perpetual contracts if they remain listed
▸ Risks discussed
- ▸The court could rule in favor of the CFTC, validating Kalshi's contracts
- ▸Increased competition from 24/7 retail-focused derivatives platforms could pressure CME's margins
Hear it yourself
"These ships are massive oil tankers carrying millions of barrels of volatile crude oil. And so what scares authorities is that they could explode or they could cause massive oil spills that would be a problem, for the rest of the world. So the fact that this hasn't happened yet, I mean, is that just pure luck? The coast guard officials I talked to said it's a small miracle. However, some of these dark fleet tankers operate in faraway corners of the ocean, and so it's possible there has been an oil spill. It's possible that there have been incidents that have gone unknown to the rest of the world."
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