Cboe Global Markets CEO Craig Donohue warned investors about perpetual futures’ potential for rapid liquidations and open-ended losses, contrasting them with options’ defined maximum loss. He cited a surge in VIX call-option trading earlier this month, with daily volume at its highest in more than two years.
Cboe Global Markets CEO Craig Donohue cautioned investors about the risks of perpetual futures, saying sharp volatility can trigger sudden liquidations and unbounded losses. He said options let traders define their maximum loss upfront while preserving upside exposure.
Donohue cited a surge in call-option trading tied to Cboe's Volatility Index earlier this month, when daily volume reached its highest level in more than two years. He said the spike exceeded levels seen during the 2025 Liberation Day sell-off, when the VIX climbed above 50. Coinbase and prediction-market startup Kalshi are seeking to bring similar perpetual products into traditional markets, while CME Group CEO Terry Duffy has criticized regulators for allowing perpetual cryptocurrency futures into U.S. markets.
Cboe's profit beat on Friday, rounding off a positive quarter for U.S. exchanges.
