Bloomberg Talks
00:04:03 · Scarlet Fu, Terry Duffy, Scarlet Fu
[00:04:03] S0: Absolutely extraordinary leverage where you. [00:04:06] S2: Could have a cascading of events, Scarlet, whether it's up or down, depending on which way the market's going, because of the auto liquidation process that happens associated with these DeFi markets. And also in a DeFi market, if there is a default, what they do is they tear up the winning side of the trade to pay off for the losing side of the trade. There is no waterfall associated with these contracts. So again, these contracts are small to begin with. They're 100% retail focused. [00:04:35] S0: I'll say it again. [00:04:36] S2: My business is 94% institutional business. The question is, why are we allowing these contracts to trade with U.S. [00:04:44] S0: Participants trading them? [00:04:45] S2: And if so, why are you not allowing me to have a 24-7 oil contract, even though it's a small 10-barrel oil contract, in order to move forward? So eventually I pulled that contract, as you know. I talked to my commercial participants. They didn't think it was worth it. listing it. [00:05:01] S0: But again, the CFTC was an obstacle in that process. [00:05:06] S1: I know that you are troubled by people in the U.S. trading on markets through a VPN that is illegal for U.S. participants to trade on. What would a crackdown on U.S. traders who are using VPNs to access offshore trading look like from where you sit? [00:05:21] S0: I don't know. [00:05:22] S2: I think that's up to the United States government to make that decision. I didn't make the rules. [00:05:25] S0: They did.
00:05:25 · Scarlet Fu, Terry Duffy, S3
[00:05:25] S0: They did. [00:05:27] S2: So, again, this is not a CME rule. This is not a rule from the New York Stock Exchange or NASDAQ. [00:05:34] S0: This is a government rule. So they have to. [00:05:36] S2: Tell me what it's going to look like because I don't know. So I'm curious as much as you ask the question. I'm curious about the answer myself. I don't know the answer to it. [00:05:47] S3: Definitely a tricky situation. Terry, thank you so much for joining us. That's CME Group CEO and Chairman Terry Duffy.