The systemic-risk debate over perpetual futures is aimed at the wrong target
CoinDesk·
60-second summary
Critics warn perpetual futures import systemic risk as they enter regulated markets, but Chris Tyrer, Bullish Exchange President, argues the risk stems from venue design, not the contract itself. Venue design factors include leverage limits, margin rules, index construction, and default handling, which require regulatory attention to mitigate potential risks to the market.
As perpetuals enter regulated markets, critics warn they import systemic risk. But the risk comes from venue design — leverage limits, margin rules, index construction, and default handling — not the contract itself, argues Chris Tyrer, President of Bullish Exchange.