YouSaid · the spoken record

Terry Duffy

lines on the record: 63
first: 2025-10-02
most recent: 2025-10-02
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“A situation right now with regulatory issues where you know go ahead and do it and we'll apologize later is the old saying whatever it is and that's not a good place to be so that worries me a little bit Tracy”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“So I don't have one particular thing. So you could say anything, and that's it. Yep, that worries me. But I try to manage it and move forward. And I like to be. Tell my people a couple different things. I love looking for, I love the future. I love young people. I think they're innovative. I think their opportunities galore going forward. And I like to use my past as something that I learned from, but not live in it. So I don't like to look through the rearview mirror. I like to look through the windshield and go forward. But when you do that, there's a lot of things that can scare you. We talked about them earlier today. Some of the new innovations that are coming out, some will win, some will fail. So you have to be very careful about how we participate in that as an institution like CME. So a lot of that concerns me. No different than when Sam was putting forth with FTX back in the day. And he was backing up his coins with synthetic other coins. And then he wanted to have a margining system with no risk management. That was fraught with danger. And I saw that, but it seemed like nobody else did. I'm not suggesting that's today's world, but there seems to be...”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, so when you look at percent of stock market moves at the levels that we're at today versus the percent of the levels that were at 08, it's a non-event. So if we had 9%...”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“If that were to come out in the blue, it would be really bizarre. But I think that was fairly well telegraphed, Tracy, to say the least, Liberation Day. So I think the market was well prepared for it. It reminds me a lot of last week with the Fed That was the most telegraphed quarter point move in the history of the Federal Reserve, right? Is that fair? I think Liberation Day wasn't too...”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“You know what? Just another day to be honest with you. I hate to say it that way, but we've seen so many different events in my career that when you go back to the 08 crisis, you go back to the flash crash, you go back to other scenarios, the pandemic. You know, I look at the pandemic as one of the more frightening times in the history of markets versus liberation day. Liberation Day is more about what are the tariffs going to mean or not mean. And, you know, I think there's a lot of people that believe that there's no way that these could come to fruition. So it was kind of tempered down a little bit. The activity was pretty exciting, but.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“The only way I can answer that is by head And I would say that that is not the case because one of the things that I've seen with technology is it creates other jobs and it eliminates the last job. So, yes, we have seen the elimination of certain things to your point, but it's created other ones. So I look at it as headcount, not so much as project related.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, yeah, there's no question. But see, we're kind of in a bit of a limbo for lack of a better term spot right now because a lot of that stuff that I'm working on. Going through Google right now because of the relationship and the partnership I have with Google, I'm transitioning, I'm going to transition my markets to Google Cloud. I'm transitioning a lot of my tech to Google Cloud. And a lot of that machine learning and things of that nature or Gemini and all that we're going through Google. So we are doing it together. So it's not just my people doing it more. It's CME and Google working together to deploy that. So, I can't give you a singular answer, but what we're doing as CME because it's a mix between us and you”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“And retail are absolutely blurred right now. And I think there's a lot of people going, what does that mean? I feel like I've got some kind of handle on that. And that's why I'm doing what I'm doing, because I think that those blurred lines will continue to go forward in the products that they participate in and how they do it will continue to get blurred. I think both can grow and they'll grow exponentially, but they're going to look a lot alike.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think there is always an opportunity for big institutions to look at what the retail is doing. So let's be mindful of where the money comes from institutions. So if you put together a pool of dollars and you give it to a large institution, they call it institutional money, that probably came from a subset of the teachers union of a lot of people. So everybody's got $10 and this all of a sudden it's worth $100 million or a billion dollars, whatever the case is. So that retail money that's now big is now called institutional money. So their thought processes aren't too dissimilar from their clients. So yes, I can see that going back and forth, ebbing and flowing about the ideas of what they want to participate in or not. First of all, I think people are always looking for opportunity. I think they're always looking for efficiencies. And I think that the lines of institutional...”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“And we're hearing different things now. Does a product come out like a prediction market where everybody goes, aha, I finally found a holy grail on how to lay off my risk? I don't see it. I think the prediction markets that will be listed will be driven by the demand of the participants, not the market itself. Does that make sense to you?”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“But who wants that people that are in the lobster business, but the rest of the world doesn't care about that because we can't afford lobster and we can. We just pay for it whatever the price is. So there really isn't a marketplace there for the speculators to participate in. So is that the same situation with what you outline? I'm not suggesting it is, but that's up to the participants. That's why we're very careful Not to put out products that we think there's no demand for. We research with massive constituents about what they think they need in order to manage risk.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Again, I think when you look at specific events that you just outlined, I'll use Tesla. To your example, I would have to see what the interest is by the participants. Because if you get a contract that you list, whether it's a prediction market or a standardized contract and no one wants to trade it. Then it's an irrelevant contract anyway, right? So I like to say that, and what I hope the people in Maine don't hate me because I've used this example a few times. There's people in Maine that I think you should have a lobster futures contract, right?”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Again, Joe, I'm not going to disagree with what you just said because I think that the more risk management tools we have is better. What you just described was risk management. You did not describe a gaming type scenario. Described a company of Tesla that has multiple divisions that you like one but you're a little worried about the production of their cars. It happens every single day, and it's been going on in the market for 100 years called paratrading. So you sell this and buy that, right? Because you're not quite sure when the event's going to happen, but you know, it's all spread it up a little bit.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that when you look at, they've always kind of carved that economic data out. The USDA and other entities, they've always gotten the data out through past shutdowns. And I do think that the pressure to reopen the government will be immense from Both sides of the aisle, so they will have to come to it, even if it's a short shutdown. I don't see it being a long one because of the reasons the social services that are so important to so many constituents of Congress need to have happen.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“You always think you know what the playbook is to some extent, Tracy. But again, I think that if you, the one time that you apply that strategy and you go, whoops, what do you mean it happened? You know, that's a problem, right? So you always have to be prepared, and we are. I think if there is a shutdown, which I think they're very likely could be, I don't think it's going to be the shutdown that is going to be a disturbance to the economy. I think it's going to be a disturbance to parks and recreations. It's going to be some of the other disturbances, which this is where it bothers me, social services. That's a problem. But what does that mean for the financial system? Not so sure. But, you know, people's social security checks getting out on time. Does that get delayed? That's a problem.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“They expire. So, my point is a perpetual would not work in deliverable products. So you say, well, what about cash settle products, Terry? Would that work? I don't know if they would work. The index would continue to go. But again, it would not fit the definition under the law of a futures contract because whether it's cash settled or physical settled, the definition is the exact same thing for a futures contract and it's not the perpetual definition.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“How am I going to make or take delivery on the food markets of the United States, which is very integral. Into pricing of these. So deliverable products. Else is deliverable? The United States Treasury Market is deliverable”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“There are certain markets that could never become perpetuals and there's a reason for that. So let's talk about what those are. If you have a perpetual livestock or grain market, how in the world am I going to make or take delivery on something that never expires?”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“If you created a 50-year perpetual Which some of these people are doing in Europe and others. They say, well, they're perpetuals, but they'll do something in 50 years. Okay. That's not the definition by law of a future.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Against the A futures contract. Defined as a product that is to be price determined at a later date. It doesn't say it'll be, and you have to have a haha test, right? On that, so a 50 year perp is not a later date. So that was”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Then that would be a problem. So, the question is if you're sitting at a dealer anywhere around the world and you're holding US futures and you can save the capital of an offset you swap, are you going to put it at LCH because they're nice guys? Are you going to put it at seeing me to be part of that $24 billion because it's growing? My point is the futures has to grow in order to get the larger pool of the swaps offsets. And right now, for every swap contract that's out there gets the offsets against my future products today, we're not missing out on anything. So his offering is a charade game of saying, look how big that is. Okay, it's big, but no one needs it right now. The futures market is what it is right now. It's big, but we have the swaps to give the offsets. Does that make sense to you?”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“But that's not the case because I just explained to you that we give $24 billion a day in efficiencies in our interest rate complex. The only way that that larger pool of swaps would be relevant in creating a better offering is if they had any futures volume. You have to have the futures volume. We have 100% of the futures volume here at CME. And for every one of those futures contracts, we have a swap, a dollar swap at CME that offsets it. And if we didn't,”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“because they believe that the swap dollar swaps market that's in London, which is completely different than futures, dollar swaps is fixed versus floating. It is not issued by the United States government. Treasury contracts are issued by the government. Futures, like I said, turned into the cash. So they believe that because there's a large pool of dollar swaps being cleared at London Clearinghouse, the offsets will be greater than CME”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Every regulator in the world, if he wants to put that offering in the United States, let's go. I want to compete with him.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“In our foreign sovereign debt. There's $27 trillion of U.S. treasuries outstanding today. If we have a problem like we saw in London with the metals market of nickel Where they busted the trades, they didn't do a risk management. They just busted the trades, which left people hanging. What's to say that the Bank of England doesn't do that with the U.S. Treasury market if in fact somebody has an issue? And if they have an issue with that, what's to say that that part of the market that they did that on doesn't have a bigger impact on the US market? So my issue is the US Like every other country in the world should have the laws of its foreign sovereign debt be by the laws of that nation. And we don't have that in this particular situation. Every other country in the world has the laws of their country applied to their sovereign debt except the United States on futures. And they can say, well, it's a derivative. No shit. It's a derivative. It's a derivative that turns into the cash product that's exactly what you're trying to protect. So that's my argument. I told Mr. Lutnik, I told Congress, I told”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, okay. So I don't have an issue. Listen, he's a treasure, he's a commerce secretary. My concern with his offering is the following, and I'll say it a hundred times. They are clearing that U.S. Treasury Futures contract in the UK under UK law. In the United States, the law states that if you clear a cash treasury which is under the new law coming up under the Treasury Clearing Mandate Rules, that it's an SEC single regulatory mandate, meaning you go wherever you want, but the SEC is going to regulate you. My concern was that futures expire into cash. So what's the difference between a future and the cash market once expiration happens on the future? Why wouldn't you treat them the same? And why would you allow UK law and UK bankruptcy to let US participants”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Got a lot of competitors throughout the years, and there's such a thing called efficiencies in the marketplace, Tracy, that capital intensive worlds that we live in today because of a whole host of rules going back from Dodd-Frank into other Basel rules and things of that nature for the banks, we create today around $60 billion a day of efficiencies for our market participants every single day. And in my interest rate area, it's $24 billion a day of market efficiencies. That's money freed up that the largest participants in the world can use it for other areas. They don't have to park it with me to be in compliance anymore because I created. Those margin offsets for them. I think that's really important going forward. So the other part of your question was.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“It's the only commodity in the world that's banned by Congress. And I think we talked about that last time we were together. But I think, Joe, to your point is, I don't go there saying this is bad or this is good. I go there and saying, let's have eyes wide open. That's all I want because there's nothing worse than having if someone gets sick and we all get a cold, then we go, how the hell did that happen? Well, that's not good for the participants, not good for the institutions. And right now, when you get newer entrants coming in, I'm not saying they're skirting the process. I'm not saying Kelly's skirting the process. But when you say you have CFTC approved products, let's make sure that the public understands what they are. They are CFTC products that have not been objected to.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“We're doing things with our retail participants today that I think some of my predecessors over the years ago, what the hell has he done that we never would have done before. You know, and I believe that if we still did nothing around innovation, we would be trading pork bellies. We would be trading onions, which are illegal. They dumped them all in the river and kept the Burlax sacks. Pork bellies are gone. They're no longer here. So we'd be out of business.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“That's different. I don't go to Washington to ever be anti-competitive because if I'm going to be anti-competitive, it doesn't serve my interest for the long run. Anti-competitive people in nature is good for the short term, but really bad for the long term because you want that ecosystem, as I said earlier, to continue to grow. And if you're smart and innovative enough, you will grow with it. And that's one of the things that I'm looking at with CME. That's why I did a deal with Fanduel. Fanduel has 13 million accounts active today in the United States. Those will have access to my products. I never had that before.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“My prices today versus what they were in O2 are completely different because when you look at the headline price, you're not looking at the tiered pricing that certain constituents get for volume. So volume pricing discounts are massive within our world. So that is a big deal. So my average rate per contract, $69.70 a contract, it can be higher or lower, but the volume could be a lot less too. So we do quite well with the model that we have.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, first of all, I wouldn't do that because I'm partnering with. So that's not something I'm prepared to go say these new prediction markets. I will say that certain prediction markets could be potentially scary, like political outcomes and things of that nature. So I wouldn't say all prediction markets are scary. So I think that's a bit of an overstatement. Second of all, on pricing power, if you look at the price of CME today on a per contract basis, it's cheaper now than it was 25 years ago. So you might say to me, how could that possibly be? You got all those pricing power. Well, there is also another company as long as we're talking about retailers. Let's talk about Walmart. There's a Walmart model. How about selling something for less but selling a hell of a lot more of it? My volume today, I do more in the first hour than I did it in a week back in 2002. So the question is, we do more because we have access to around the world, which allows me to make CME more.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Named after Sears and Roebuck, they got naming rights over it. When Sears was flying in the 90s, 80s, and 90s, they never heard of a company called Amazon. Nobody knows what a Sears is anymore. Sears is gone for the most part, right? So why did that happen? Because they didn't adapt because they felt that their vertical was so strong along with some of the other ones. And these other new participants came in and destroyed them. I cannot allow that to happen. So for me to participate in the new world and protect the world that's going on today is really important.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Happen again, there was a lot of people that were on somebody's retail platforms that had positions on that don't even know how they got them on because they didn't understand it, but they were almost embarrassed to ask what happened, whether they got caught up in an option straddle or something else. They did not even realize what happened. So education is key, and that's one of the things that we have been constantly hammering home. So that's why I think the retail business is very exciting for CME and for other platforms around the world. Ecosystems are important. One of the things I tell my team all the time, I said, you better look over your shoulder and see a line of clients always coming because the day you look over your shoulder and it's gone, you're in trouble. And if you want to be a gigantic institutional player, I think that's great. And that's what CME is. But we have to make sure that we can move laterally left and right. If you look at historically the growth of markets and what's happened in the 90s, there's a building across the street from it. It used to be called the Sirius Tower.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Happened. Secondly, the retail participants have never had a place to go to clear their trades. As you know, it's CME. We don't directly take clients. They have to come through one of our member clients. So those people didn't want some of these really small clients because they were a risk. But technology all of a sudden has allowed the risk management tools to let them participate and you could do, and the one thing I liked about Sam Bank Murphy's offering, and I give Sam credit for this, was auto liquidating. Auto liquidation is something that a lot of people have already implemented. They call it something different. So that risk management tools that we have in place that others have in place has now allowed us to take on the retail clients and the ease of them coming in. Thirdly, I think it's really important that you educate them what exactly they're doing. And futures can be very frightening. People get very frightened. Like during the pandemic, when the explosion of day trading started,”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“I think the key difference is the ease of access for the retail participant to sign on to a platform. Historically, it's been very, very difficult and a very difficult process to sign up to trade markets, whether they're securities or whether they're futures. So the retail participant will go through an application and probably get through halfway through page one and go, you know, this is ridiculous. There's a reason why Tracy and Joe that the dark market or the illegal market in gambling is still about three times larger than the regulated marketplace because people just don't want to be have that exposure of giving out their information, right? So it's still a very large market, the illegal gaming market. I think that when you create a greater ease for people, which is going on right now for us, especially with the fan duel, you'll go through an app, it'll be a five-click process and you'll be ready to go. That historically has never”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“But I think you have to look at it in that range. That's my whole point, what I said to Tracy earlier. We have to let people know what they're doing because every political event is not a presidential election. There are some political events that are so small that can be deemed readily manipable and you don't ever want to get in that situation because that's how you destroy innovation. And that's my concern with some of the political markets.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Plus million people potentially voting with the base of voters more open than that, fine. Okay, maybe we say understand, okay, that's no different than some of these other big markets. That's a big market all of a sudden. Now we'll take it down to the Congress. We have less people voting in a congressional race for Congress, correct? So every member, every $500,000 people gets a member of Congress in the United States. So now you got 500,000 people of a population gets a member of Congress. The voting population for that is much, much smaller. That's eligible to vote. Now let's take it to the next level. We have got a local mayor's race in a suburb that you live in that there is 500 people there. Do you want a prediction market on that? Because I'll tell you what, I can probably buy that election and have my prediction market pay off in a big way. And that would be deemed readily manipable. Now, I gave you a pretty wild spectrum.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“So, Joe, let's talk about that a little bit because I think it's interesting. Under the Commodity Exchange Actor is a provision where a contract cannot be readily manipitable. So that's a law. So when we're looking at prediction markets on political outcomes, and we're talking about a presidential election, we're talking about”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“And I will say it because I say what I want to say to people. Respectfully, I think disclosure is good. It's like payment for order flow. I don't think payment for order flow should be on the 34th page of a perspective. Put it up front, tell the clients that's what you're doing, and nobody's got a concern with it. But we don't because why? And I would say that people are maybe a little thinking that maybe it shouldn't happen. I think it helps the marketplace. But tell people that earlier, and I think that's what you guys should ask him why, won't you say that these are not approved, they're just not objected to”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Either stop it or let it go. It's really hard under the self certification process to understand anything in 24 hours, especially for the government. So the question I would have for him, as I do for myself, is how are these some of these contracts not novel and complex? And don't you believe that your investors need a little bit more time by the government agencies to make sure that everyone's comfortable so you can offer them in a way that is very sound-minded and sound business to grow versus just going out there after 24 hours of nobody objecting and now you're promoting and he is promoting that our CFTC approved products they're technically that is wrong they are not CFTC approved products what they are is they have not been opposed by the CFTC there's a big difference there and that's the part that they are not disclosing to their user base and so I would say to him or other”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't know the gentleman. I've never met the gentleman. I have no idea. I think what's important is that He understands that we, because the CFTC And that's what they are suggesting right now, which is true. So I'm not saying what he's saying is wrong. They self-certify these contracts. Does it make it right for him to list all these different contracts because the CFTC's got 24 hours to make a decision?”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“The reason why I don't see it to rush to get into it, if you look at CME today with XRP on the Ripple crypto contract, we are the premier place for people to mitigate and manage risk on Ripple. Now, I was one of the last people to get into crypto in 2017, but yet we have one of the biggest marketplaces. I just listed Ripple. So the credibility of CME is very important to me. I think it's important to my customers as well. That's why I'm very cautious about somebody's political contract. So that's why I was trying to tie the two together a little bit.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't believe right now that event markets on politics are a good thing. That might take on it. I want to see how it goes out. I didn't like mail-in voting either. I thought voting should have been in person historically. But my mind has changed on that too for a whole host of reasons because now we get more participants and we have technology to protect against bad behavior in voting. I think we can get the same on these event contracts for different events. I don't know if it's there or not yet. We've had one political event contract that was listed so far that we're aware of, and that was the presidential election, right? So that's for the most part, that's all that's happened. I think that's kind of a small sample of a political event contracts to base your decision on, is this good or bad? So I kind of want to see how it goes, Joe, to answer your question. So I don't see the rush to get into it.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“I would not take anything off the table. It's not something that I support at this moment, but there's a lot of things I think when people say they don't support and then all of a sudden they do it and you go, well, what changed your mind and you don't have a good reason? So I never said I wouldn't list Bitcoin. I just thought it was important to make sure that the timing is right. So I waited till 2017. Then one day I said today is the day because the timing seems right to me. So I never said I wouldn't do it, even though there was a lot of people between 2008 when the price of Bitcoin was $8 to 2017 when I listed it that said that this stuff is tulips. It's garbage. Don't trade it.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“Thank you. You should host. Thank you. Anyway, the 1256 contract. So when you talk about sports, sports will not be true. On event contracts under the 1256 regulation, but gold, equities, all our other core businesses on events, we will believe that they are not event swaps. So swaps are not treated under 1256. Futures are. So we think our events on our market participants and those products will be treated with the same tax treatment we get today for our other businesses. And then events such as entertainment, such as political events and sporting events will be traded as ordinary income.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“What Tracy's referring to, listeners at Odlots, is what's called 1256 contracts under the tax code, which allows people to get a blended rate of 60-40 tax treatment, 60 long-term gains, 40 short-term, comes out to a blended rate of about 27%. Futures contracts cannot get long-term capital gains because of the way they expire today. So we don't get long-term capital, so we get what's called 1256 treatment. That's what Tracy, I believe you're referring to.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“So let's make sure we understand both sides of the equation. You said only losses, gains as well. So we'll talk about tax treatment in general.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“But I do want to make sure that the retail participant has the ability to participate at their level. That's why these contracts will be binary in nature. That's why these contracts will be a dollar so anybody can participate. But again, I think that the ultimate regulatory framework as it goes forward has yet to be harmonized for a lack of a better term between traditional marketplaces and now we're looking at event contracts on sports and other indices. So I'm excited by this, Joe, but I think there's a lot of what you said in your question that's yet to be answered. And the problem is right now there's a lot of people going out with offerings before these questions have been asked, answered, or for sure studied.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source
“So, I think that people say that speculators are bad for the market. Well, who's going to create the liquidity for the investors if we don't have speculators? So that's point one. Going back to the regulation, I think that when you look at the regulation for these products, we have to let the participants be made aware through education and other tools of what the rules of the road are. I think right now with the crypto world where it's going right now and some of the other marketplaces where they're at on the predictions, I think there's some confusion. I'm going to be doing a roundtable in DC this coming Monday associated with just these type of topics. What's innovation, what's not. And so, Joe, I think your questions are really, really strong. And that's one of the reasons I'm doing this deal with fan deal, because I want to walk before I run here. I think it's really important.”
2025-10-02 · Odd Lots · Terry Duffy on the CME's Big Push into Retail Trading · IDENTIFIED FROM THE TRANSCRIPT · source