The Chicago Mercantile Exchange (CME Group) plans to file a lawsuit against the U.S. Commodity Futures Trading Commission (CFTC). This was announced by CME CEO Terrence Duffy in a comment to CNBC .
The lawsuit stems from the CFTC's approval of perpetual futures trading on the Kalshi platform. Duffy stated that such instruments are essentially swaps, which, under the Dodd-Frank Act, require different regulatory oversight.
According to Duffy, CME holds exclusive licenses for all major benchmarks, meaning such products should be traded through their platform.
He emphasized that he has been preparing the lawsuit for the past eight months. The exchange head expressed readiness for a "good fight" and has no intention of backing down.
Duffy criticized the CFTC for its swift approval of the new product, noting that the high leverage associated with these instruments poses a risk to the market.
"I am seriously concerned about the structure of these contracts. I don't want people to lose money on products they don't understand," Duffy stressed.
Duffy compared the current situation to the housing market before the 2008 crisis, labeling excessive speculation as a "looming disaster" and reaffirming his commitment to defend the exchange's position in court.
It is worth noting that in May, the brokerage firm Interactive Brokers launched a platform for trading event contracts, which combines offerings from Kalshi, CME Group, and its own service, ForecastEx.