ICE and Trade[XYZ] Plan US Perpetual Futures Market for Retail Traders

Intercontinental Exchange (ICE) and Trade[XYZ] have announced plans to seek regulatory approval for US perpetual futures markets targeting retail traders. The proposed market, reported on Thursday, aims to provide a regulated avenue for US retail investors to access perpetual futures, a type of derivative that allows traders to speculate on asset prices without an expiration date.

Following the announcement, Hyperliquid’s native token, HYPE, saw a price increase, surging approximately 20% on Thursday and trading above $96 at the time of writing. This surge brings the token closer to its September all-time record of $97.96.

ICE, the owner of the New York Stock Exchange, is taking a minority stake in Trade[XYZ]. The companies stated that the proposed market would operate separately from ICE’s existing institutional futures business, with a dedicated clearing structure. ICE indicated that this separation is intended to shield its current institutional clients from potential counterparty risks associated with retail trading.

Distribution of the new perpetual futures products is expected to occur through ICE’s joint venture with OKX, pending separate regulatory approvals. ICE had previously invested in OKX in March at a valuation of $25 billion. However, ICE’s separate tokenized stock venture with OKX has faced objections from 38 companies, including major corporations like Walmart, Eli Lilly, Carnival, Arcos Dorados, and Cigna, as of an Oct. 28 notice. These objections pertain to tokenized shares, distinct from the Trade[XYZ] proposal which involves perpetual futures.

Perpetual futures have seen increasing regulatory attention. In May, the Commodity Futures Trading Commission (CFTC) approved Kalshi’s Bitcoin perpetual contract. However, the CFTC indicated that perpetuals referencing other asset classes would require case-by-case review, suggesting the proposed ICE and Trade[XYZ] markets may be subject to thorough regulatory scrutiny.

Hyperliquid is described as the largest decentralized exchange for trading perpetual instruments, according to DefiLlama data. More than 99% of participation in its current markets is institutional, ICE noted.

Key uncertainties remain regarding the venture. The specific investment amount for ICE’s minority stake in Trade[XYZ] has not been disclosed, nor has a launch date for the proposed markets. Cointelegraph reported that ICE and Trade[XYZ] had not responded to requests for comment by publication. The specific assets to be covered by the perpetual futures markets, beyond cryptocurrencies, are also subject to regulatory approval.

This development follows earlier discussions around regulated crypto access. On August 19, President Donald Trump mentioned that CFTC Chair Michael Selig was working to bring Hyperliquid into the country in a “fully compliant and legal fashion.” Prominent figures like Stanley Druckenmiller have expressed interest, with Elon Musk also drawing attention to the news.

The proposed market would require customers to undergo identity and Anti-Money-Laundering checks, aligning with traditional financial market regulations. The success of this venture will likely depend on securing the necessary regulatory approvals and effectively managing the distinct risks associated with retail derivatives trading.

Why This Matters

The materials describe a narrow update: ICE and Trade[XYZ] announced plans to seek regulatory approval for US perpetual futures markets targeting retail traders. The investment amount for ICE’s minority stake in Trade[XYZ] was not disclosed.

Broader Context

Source materials place the factual news in this context: Hyperliquid’s token pumped following news of ICE and Trade[XYZ] unveiling plans for US perpetual futures.