Simply put
- Intercontinental Exchange and CME Group are reportedly asking the CFTC to address market integrity risks related to HyperLiquid.
- The HyperLiquid Policy Center pointed out the public nature of trading on the platform and publicly denied that traditional exchanges’ concerns were unfounded.
- Hyperliquid generated $21.51 billion in notional trading volume on Brent crude oil perpetual futures amid volatility in energy markets.
of superfluidity The Policy Center on Friday pushed back against concerns purportedly raised by Wall Street’s incumbent exchanges, arguing that decentralized exchanges (DEXs) are designed to be “hostile” to insider trading and price manipulation.
“Hyperliquid’s transparency acts as a strong deterrent against fraudulent activity and facilitates monitoring, detection and investigation by regulators and law enforcement,” the organization said in X magazine. postpoints out the public nature of transactions on the platform.
Hyperliquid has become an increasingly popular place for traders to use derivatives to speculate on products, so much so that Intercontinental Exchange, the parent company of the New York Stock Exchange, and CME Group have warned regulators about the potential risks. bloomberg.
The newspaper reported, citing people familiar with the discussions, that both companies have raised concerns with the CFTC about HyperLiquid’s pseudonymous trading environment, which could theoretically be used by insiders or sanctioned entities.
The Singapore-based DEX operates without native know-your-customer (KYC) requirements, but restricts users in the US and Ontario, Canada. This format mirrors most applications. decentralized financeor DeFi such as Polymarket.
The concerns reportedly arose after Hyperliquid’s trading volume increased sharply in March 2019. perpetual futures Energy costs have been pegged to oil prices since the United States and Israel attacked Iran about two-and-a-half months ago, and the conflict continues to drive up energy costs.
Because hyperliquid is reportedly unregulated, ICE and CME are concerned that it could lead to unreasonable fluctuations in crude oil prices and ultimately undermine the integrity of market metrics that reflect the cost of transportation and transportation-related goods and services.
The HyperLiquid Policy Center acknowledged in an
formed In February, the organization received funding with $29 million worth of Hyperliquid’s native tokens to serve as a legal resource for lawmakers. Hyperliquid Policy Center claims to be the independent advocacy and research organization for DeFi in the United States.
Since the outbreak of conflict in the Middle East, Hyperliquid has generated $21.51 billion worth of notional trading volume in perpetual futures related to Brent crude oil, the data platform said. garlic. Unlike traditional futures contracts, which have a fixed expiration date, perpetual futures can be held indefinitely as long as the trader maintains appropriate margin requirements.
As of Friday, HyperLiquid’s Brent crude oil perpetual futures comprised $306 million worth of outstanding contracts, representing 3.4% of HyperLiquid’s open interest. Meanwhile, perpetual futures tied to Bitcoin’s price had a notional value of $2.2 billion, representing 24% of open interest.
According to , the price of Hyperliquid’s native token was little changed from Friday’s $44.67. CoinGecko. The digital asset has soared 75% in the past year, even as the prices of various altcoins have struggled as many worry that the crypto price slump will be prolonged.
