ICE CEO Says Regulators Must Soon Decide Whether to Legalize Perpetual Futures or Enforce Dodd-Frank Rules on Platforms Like Hyperliquid

Intercontinental Exchange Inc. is in discussions with regulators about launching perpetual futures contracts, its CEO said. Jeffrey Sprecher, chief executive of the New York Stock Exchange parent company, spoke during a fireside chat at a Bernstein conference on May 27.

'" he said. " Sprecher rejected the framing of a Bloomberg report that ICE and CME Group Inc. are pressing regulators to rein in Hyperliquid. He said ICE is in communication with the Hyperliquid team and trying to learn from them.

"I love these guys," Sprecher said. " Hyperliquid has launched 24/7 perpetual futures oil markets. Perpetual futures are futures contracts that do not have an expiry date and typically offer high leverage.

Sprecher said the traditional finance equivalent of perpetual futures is a swap, but rules on swaps as outlined in Title VII of the Dodd-Frank Act are prohibitive. Sprecher said regulators in the coming months will have to decide whether to create a new category of regulated perpetual futures or compel platforms like Hyperliquid to comply with existing Dodd-Frank rules.

He said the fallout of the looming SpaceX initial public offering could influence the decision.

TradeXYZ, a Hyperliquid-powered exchange, has launched a pre-IPO futures contract tied to SpaceX. Sprecher said SpaceX goes public on June 11.