economy
CFTC chair Selig defends decision to approve ‘perps’ in U.S.
Michael Selig said that incumbents will always fear the future, but it's important to develop the new asset class domestically rather than only offshore.
TL;DR
- The CFTC has approved perpetual futures (perps), which have no expiration date, for domestic trading.
- Chair Michael Selig believes it's important to regulate these products in the U.S. rather than let them develop solely overseas.
- Concerns about high leverage and risk have been raised by entities like CME Group CEO Terrence Duffy.
- Selig argues for proper disclosure and broker responsibility in evaluating customer suitability for these products.
- Kalshi, the platform offering perps, noted their maximum leverage is less than that offered by CME on some futures.
- Selig denied that political pressure influenced the CFTC's decision.