News linked to both this project and an event.
: CME Group Chairman and CEO Terry Duffy stated that the approval of perpetual futures contracts in the United States could expose traders to tax and regulatory uncertainties, as the products may ultimately be classified as swaps rather than futures. Duffy explained that buyers and sellers in perpetual contracts periodically exchange funding rates, a mechanism that aligns with the legal definition of a swap under U.S. law. The Commodity Futures Trading Commission (CFTC) currently categorizes them as futures, and CME is challenging this classification in court. Duffy noted that if perpetual contracts are treated as futures, some institutional traders may qualify for the mixed tax treatment under Section 1256 of the U.S. tax code. If classified as swaps, they may be taxed under ordinary tax rules. The Internal Revenue Service (IRS) has not yet issued specific guidance on the tax treatment of perpetual futures. Legal experts said that perpetual futures are structurally similar to swaps but serve an economic function akin to futures, making the court’s interpretation of the relevant definitions crucial. Even if the litigation clarifies product classification, the IRS may still need to issue separate tax treatment guidance.
CME Group, the operator of the largest U.S. derivatives exchange, sued the Commodity Futures Trading Commission (CFTC) and its Chairman Mike Selig last month, opposing the regulator's approval for prediction market platform Kalshi and cryptocurrency exchange Coinbase to launch crypto perpetual contracts. Non-US perpetual contracts achieved a trading volume of $60 trillion last year. CME argues that the CFTC misclassified the relevant products and improperly applied the law, claiming that futures should have an expiration date, whereas perpetual contracts allow traders to establish leveraged positions on the future price of an asset without an expiration limit. CME also contends that the products harm its longer-dated futures business and that the CFTC failed to adequately consider the impact. The dispute between the parties intensified during the early stages of the Iran conflict, when demand rose for 24-hour crude oil perpetual contracts on offshore DeFi exchanges like Hyperliquid, as well as for on-chain prediction market trading related to the crude oil market. CME subsequently applied to accelerate the launch of 24-hour West Texas Intermediate crude oil futures trading but was blocked by the CFTC. Kalshi, after launching its first related product last month, stated that its trading volume exceeded $1 billion in less than a week. The CFTC is currently advancing the U.S. perpetual contracts market through policy statements and case-by-case reviews, rather than through new rulemaking procedures.
According to The Block, Bernstein stated that before the compliant computing power futures planned by CME Group and Intercontinental Exchange are approved, AI computing power derivatives adopting crypto market mechanisms have already launched. Currently, Architect's offshore trading platform AX has launched GPU perpetual futures, while Kalshi has listed GPU rental price event contracts regulated by the U.S. Commodity Futures Trading Commission.
Tony Welch of SignatureFD stated that the market has overestimated the likelihood of the Federal Reserve raising interest rates. After the weak June CPI inflation data, futures markets reflected a lower probability of a rate hike this month, but data from the CME Group indicated that at least one rate hike this year remains possible. Welch said that regardless of fluctuations in fuel prices, inflation is trending downward. He noted that currently, there is no wage growth that could sustain broad-based inflation across the entire economy. Welch expects Fed Chair Powell to attempt to keep inflation expectations near the Fed's 2% target and use rhetoric to help set and stabilize those expectations.
Odaily Chicago Mercantile Exchange Group has filed a lawsuit against the U.S. Commodity Futures Trading Commission (CFTC) and its Chairman Michael Selig in the U.S. District Court for the District of Columbia, concerning the agency's routine approval of cryptocurrency perpetual futures. The lawsuit stems from the CFTC’s May 29 approval of a perpetual futures contract linked to the spot price of Bitcoin by prediction market platform Kalshi, and the issuance of a no-action position for a similar product on the Coinbase exchange. In the filing, CME argues that the CFTC's treatment of "futures" with expiration dates as "swaps" violates directives from the U.S. Congress and the Commodity Exchange Act, and requests the court to invalidate the relevant perpetual futures actions. CME also claims that Selig acted unilaterally without a full panel of five commissioners. A CFTC spokesperson stated that CME is waging a "legal battle" against the agency and the government’s crypto policy, calling the lawsuit "frivolous." Kraken has also announced the launch of perpetual futures trading for U.S. users via the CFTC-regulated platform Bitnomial.
According to Bloomberg, the U.S. Commodity Futures Trading Commission (CFTC) is considering blocking the Chicago Mercantile Exchange (CME Group)’s plan to launch around-the-clock crude oil and gold futures contracts. CME previously announced it would launch 24-hour, seven-days-a-week crude oil and gold futures contracts—a move that reportedly caught the CFTC off guard, escalating tensions between the two parties.
the Chicago Mercantile Exchange Group (CME Group) announced plans to launch gold and WTI crude oil futures products available for trading 24 hours a day, 7 days a week, to meet global investors' demand for around-the-clock markets. It is reported that CME Group will launch the Micro WTI Crude Oil Futures contract on August 30, which will be one-tenth the size of the standard WTI crude oil futures contract. Meanwhile, the 1-ounce gold futures contract is planned to support 24/7 trading starting July 26. However, these products are still subject to regulatory approval. They will be listed for trading on the New York Mercantile Exchange (NYMEX) and the New York Mercantile Exchange's precious metals market (COMEX), respectively, and will be cash-settled. (Bloomberg)
CME Group announced on X that it has launched Avalanche (AVAX) and Sui (SUI) futures contracts for investor trading.
According to Business Wire, Interactive Brokers (NASDAQ: IBKR) announced on May 14 the launch of its first unified prediction market trading interface, enabling simultaneous access to three major U.S. prediction market platforms—Kalshi, CME Group, and ForecastEx. Customers no longer need to open separate accounts or transfer funds across platforms; instead, they can search, compare prices, and execute cross-platform orders within a single interface, with the system automatically routing orders to the exchange offering the best net price. The platform is fully integrated with IBKR’s existing trading environment, supporting unified management and real-time tracking of prediction market positions alongside other asset classes—including stocks, options, futures, and cryptocurrencies. Initially, the platform will focus on contracts tied to election outcomes, climate events, and economic indicators, with plans to integrate additional exchanges in the future.
: CME Group has announced the launch of cash-settled Bitcoin Volatility Futures, scheduled to go live on June 1st (pending regulatory approval).Based on the 30-day Implied Volatility Index (BVX), this product allows traders to trade or hedge Bitcoin volatility without speculating on the direction of price movements.The new contract is expected to carry the ticker symbol BVI, with a contract multiplier of $500 x the index value, aiming to provide the market with a more refined risk management tool.