CME CEO Terry Duffy on suing CFTC: I'm always up for a good battle, 'I won't shy away from this'

Summary

Outgoing CME Group CEO Terry Duffy explains his plan to sue the CFTC, arguing the regulator wrongly classified perpetual futures as futures rather than swaps under Dodd-Frank. Duffy states the lawsuit aims to clarify rules and would require prediction-market operators to meet stricter swap-dealer requirements.

• Terry Duffy announces CME will file litigation against the CFTC over perpetual futures.
• He argues perpetual futures meet Dodd-Frank's definition of swaps, not futures.
• If reclassified as swaps, providers would need to register as swap dealers and post five-day margin.
• Duffy says the lawsuit is based on the 2010 Dodd-Frank Act, not the Commodity Exchange Act.
• He denies retirement is linked to the CFTC dispute and says planning started eight months ago.
• Duffy accuses CFTC chairman of misrepresenting facts regarding 24/7 rulemaking and case law.
• The core dispute centers on regulatory definitions and who can offer these products.
• No direct investment thesis or tradable security was presented.