Trump administration move on perpetual futures sparks risk warnings
In short
The Trump administration has moved to launch perpetual futures, and major exchange leaders are warning about the risk. They say these products may change how markets work and how risk is measured.
They also worry about liquidity and counterparty risk when markets get rough.
What the reporting says
The Trump administration’s decision to launch perpetual futures has sparked worry among market stakeholders and major exchange leaders. They say these products could disrupt market dynamics and risk assessment, and argue perpetual futures should be treated as swaps because of their trading structure. The concerns also include liquidity and counterparty risk during turbulent market conditions.
Why it matters
The Trump administration’s decision to launch perpetual futures has drawn warnings from market stakeholders and leaders of established exchanges. They argue the products could disrupt market dynamics and should be classified as swaps because of how they trade. The concerns center on liquidity, counterparty risk and how the products would behave in volatile markets.