short
- InterContinental Exchange and CME Group are said to be urging the Commodity Futures Trading Commission (CFTC) to address market integrity risks associated with Hyperliquid.
- The Hyperliquid Policy Center has publicly dismissed traditional exchanges’ concerns as unfounded, citing the public nature of the platform’s transactions.
- Amid energy market volatility, Hyperliquid generated $21.51 billion in Brent perpetual futures trading volume.
the Excess fluid The Policy Center on Friday responded to concerns reportedly raised by current Wall Street exchanges, arguing that… Decentralized exchangeor DEX, is designed in a way that is “hostile” to insider trading and price manipulation.
“Hyperliquid’s transparency serves as a strong deterrent to misconduct and facilitates monitoring, detection and investigation by regulators and law enforcement,” the organization said in a statement. mailPointing to the general nature of transactions on the platform.
As Hyperliquid becomes an increasingly popular place for traders to speculate on commodities using derivatives, InterContinental Exchange Inc — the parent company of the New York Stock Exchange — and CME Group have alerted regulators to the potential risks, according to Bloomberg.
The outlet reported, citing people familiar with the discussions, that the two companies have taken their concerns to the CFTC regarding Hyperliquid’s pseudonymous trading environment — which could theoretically be used by insiders or sanctioned entities.
The Singapore-based DEX operates without know-your-customer (KYC) requirements, while restricting users in the US and Ontario, Canada. The format mirrors most applications’ Decentralized financeOr DeFi, like Polymarket.
The concerns reportedly come as Hyperliquid has seen a sharp rise in trading volume Perpetual futures contracts The price of oil has been closely linked to oil prices since the United States and Israel attacked Iran nearly two and a half months ago, a conflict that continues to drive up energy costs.
Because Hyperliquid is unregulated, ICE and CME fear oil prices could fluctuate incorrectly, threatening the integrity of market metrics that ultimately feed into the cost of goods and services associated with shipping and transportation.
The Hyperliquid Policy Center acknowledged in its Post
formed In February, the organization was funded with $29 million worth of Hyperliquid’s native token, with the aim of serving as a legal resource for lawmakers. The Hyperliquid Policy Center bills itself as an independent DeFi advocacy and research organization in the United States
Since the conflict erupted in the Middle East, Hyperliquid has generated $21.51 billion in virtual trading volume on perpetual futures contracts linked to Brent crude, according to the data platform. garlic. Unlike traditional futures contracts that have a fixed expiration date, perpetual futures contracts can be held indefinitely, as long as the trader maintains appropriate margin requirements.
As of Friday, perpetual Brent futures on Hyperliquid accounted for $306 million worth of contracts outstanding, or 3.4% of Hyperliquid’s open interest. Meanwhile, perpetual futures contracts tied to the price of Bitcoin represent $2.2 billion of notional value, or 24% of open interest.
Hyperliquid’s native token price was little changed on Friday at $44.67, according to Queen Gekko. Although the prices of various altcoins have struggled amid what many fear will be a long decline in cryptocurrency prices, the digital asset has risen by 75% over the past year.
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