The Chicago Mercantile Exchange (CME Group) will file a lawsuit against the U.S. Commodity Futures Trading Commission (CFTC). CME head Terrence Duffy said this in a comment to CNBC. The reason was the agency's authorization for the Kalshi platform to launch perpetual futures. Duffy stated that such instruments are swaps. Under the Dodd-Frank Act, this requires different regulation. According to Duffy, CME holds exclusive licenses for all major benchmarks, so such products must go through its venue. He emphasized that he had been preparing the lawsuit plan over the past eight months. The head of the exchange added that he is ready for a "good fight" and does not intend to back down. Duffy criticized the CFTC for the quick approval of the new product. He noted that high leverage in such instruments threatens the market. "I am seriously concerned about the structure of these contracts. I do not want people to lose money in products they do not understand," the head of CME emphasized. Duffy compared the current situation to the housing market before the 2008 crisis. He called excessive speculation a "looming catastrophe" and confirmed his readiness to defend the exchange's position in court. Recall that in May the brokerage company Interactive Brokers launched a platform for trading event-outcome contracts. The platform combines the offerings of Kalshi, CME Group, and its own service — ForecastEx.

Source: ForkLog