What is CME?

CME's moat against perpetual futures competitors rests on physical delivery contracts, which attract hedgers with real underlying exposure and the high-frequency traders who follow them.

“The real core value volumes in a contract are the guys that actually use it. the guys who actually take delivery of the oil or the jet fuel or the agricultural commodity and the and they're hedging actual needs and then you kind of get the high frequency traders come on top. But those guys look around for like real they don't want they want some kind of real demand players, not everyone just gaming each other, you know, they so that's what the CME has.”

A filing has been made to register 32 ETFs, one per NHL franchise, each investing via futures contracts on a CME index. Worth watching as a new frontier in sports-themed financial products.

“Filing to register 32 ETFs tied to each NHL franchise.”

Hyperliquid is positioned to siphon liquidity and AUM from conventional exchanges like CME if those exchanges do not launch perpetual futures or competing products.

“If the conventional exchanges like CME do not launch perpetuals or competing products at some point, then the new competitors like competitors like Hyperliquid will move into that space and they will siphon up some of the liquidity and also some of the AM that may might be deterred in these product.”

Ryan Sean Adams on CFTC blocking CME 24/7 markets, using a blunt regulatory metaphor.

“The CME filed to do 24/7 365 markets. I think just starting with their oil market and the they asked the CFTC if they could do that and the CFTC just said no you can't do that is not what you are for like stay in your lane bro.”

CME is expected to launch a sports-linked prediction market even while simultaneously suing the CFTC and opposing prediction market exchanges, illustrating regulatory arbitrage rather than principled opposition.

“They came out and said yesterday that the CME is probably going to launch a sports linked prediction market.”