CME CEO Highlights the Impact of trade.xyz and Hyperliquid on the U.S. Market

Huo Xing Finance reports that on August 21, Terry Duffy, Chairman and CEO of the Chicago Mercantile Exchange (CME) Group, stated this morning at the CFTC Innovation Advisory Committee meeting that trade.xyz and Hyperliquid are having a substantial impact on the U.S. market. trade.xyz, the primary market maker on the Hyperliquid chain, specializes in perpetual contracts for equities, commodities, and pre-IPO assets, and its trading volume now represents a significant portion of Hyperliquid’s total. Duffy has previously publicly raised concerns about leverage and regulatory issues surrounding such offshore platforms. Additionally, Duffy engaged in heated exchanges with CFTC Chair Michael Selig and Kalshi Chief Operating Officer Luana Lopes Lara regarding the regulation of prediction markets. Duffy noted that certain prediction market contracts carry risks of manipulation, particularly those listed through self-certification. He highlighted that contracts tied to the content of Trump’s State of the Union address and the timing of Venezuela’s President Maduro’s departure may be susceptible to manipulation, stating that such practices are detrimental to the entire industry.