enjay.hl retweeted
Growing up in the United States, NYSE was synonymous with the story of American capitalism. I vividly remember learning about the Buttonwood agreement in 9th grade history class. 24 stockbrokers met under a tree on Wall Street and formed the beginning of what would become the world's financial center. From pits to computers to now onchain markets, America has always led the way in innovating markets to improve price discovery and capital formation. Today the next chapter begins with ICE, trade[XYZ], and Hyperliquid.
ICE started as an electricity-trading platform in 2000, growing to acquire NYSE itself in only 13 years. It is a key infrastructure provider of America’s energy, bond, and mortgage markets. ICE is a rare story of exponential growth of a financial giant over decades, continually embracing innovation and technology.
trade[XYZ] was the first HIP-3 deployer and responsible for spearheading the flourishing global RWA perpetual market today. Only a year ago, trade[XYZ] launched its first RWA perpetual markets. They took a bet on HIP-3, which had just launched after months of tireless development. Having followed their journey from day 1, I cannot overstate how much Shoku and the team have poured into growing these markets to a genuine source of price discovery for the most important assets in the world.
Over the past three years, Hyperliquid has pioneered onchain infrastructure to house all of finance. Hyperliquid is nothing without its world-class builders. I am honored that trade[XYZ] and ICE have chosen to build on Hyperliquid to bring perpetual contracts to America.
When I first spoke to Jeff Sprecher around a year ago, he asked what success looks like to me. I thought for some time and joked that it would be seeing ICE building on Hyperliquid's technology. I could never have predicted the progress that we've made as a community in a single year to make this come true. Excited to see what we can build together next.
Intercontinental Exchange (ICE) and trade[XYZ] have announced their plan to use Hyperliquid as the infrastructure layer to deploy perpetual futures markets for US traders across crypto, equities, commodities, foreign exchange, and other real-world assets, subject to regulatory approvals. ICE operates NYSE and some of the largest exchanges and clearing houses globally.
In this structure:
+ Hyperliquid serves as the underlying technology infrastructure via HIP-3*
+ trade[XYZ] designs and implements the markets
+ ICE operates the regulated market and clearing structure
Existing trade[XYZ] HIP-3 markets will remain unchanged.
Hyperliquid is a neutral infrastructure layer with the goal of supporting large parts of the financial system. As with HIP-3, HIP-3* deployers are independent operators who use Hyperliquid as the onchain infrastructure layer for their own markets, while retaining control and responsibility over their deployment.
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HYPE CITY
If you are not in hype city, now is the time.
join here: t.me/+KWnCEZqEViRmMjJl
we will onboard everyone.
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It is really cool to see traditional institutions of the caliber of ICE leverage Hyperliquid infrastructure for 24/7 trading.
Legacy finance moving toward 24/7 trading validates the core thesis. Life doesn't pause when traditional markets are closed.
Huge congratulations to @sershokunin and the @tradexyz team, all the long nights and hard work were worth it. Excited for what is next.
Hyperliquid
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enjay.hl retweeted
Elysium has @fomo.
The exclusive trading partner for Elysium.
e/acc
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Can't wait for the average Indian to realise Perps >>> Options
(yes this is perps propaganda)
Across Zerodha, here’s roughly the percentage of individual traders who are profitable:
- Futures: ≈50%
- Option sellers: ≈40%
- Option buyers: ≈10%
- MTF: too early to tell, considering it’s a new product
One of the unintended consequences of increasing STT and all the other measures to curb F&O speculation is that they may have pushed traders toward even riskier trading behaviour.
Yes, in theory, losses from buying options are limited to the premium paid. But buying options repeatedly, more often than not, ends with traders losing more money over time than trading futures or selling options. This is not to say that trading futures or selling options is low-risk. It’s a relative comparison.
There are a few reasons why options buying has become so popular.
Most traders don’t realise this, but STT is already one of their largest costs. As STT on futures increased steadily over the years, trading activity migrated from futures to options. Today, options are about 90% of all F&O trading activity.
At the same time, larger contract sizes have made trading futures and selling options more expensive in terms of the margin required. Buying options, on the other hand, is cheaper because it only requires the premium. Hence, more retail traders are buying options.
The other big factor is weekly expiries. Earlier, traders mostly traded monthly expiries. As more contracts started expiring every week, trading effectively became 0-day options. Traders began thinking in days rather than weeks and betting on price moves over increasingly short horizons.
All of these factors have also led to significant growth in MTF, or margin trading facility. With MTF, traders can borrow against eligible stocks and hold positions for extended periods. But MTF is long only.
The intent behind increasing STT, contract sizes, and all the other measures may have been to discourage speculation. The unintended consequence has been traders moving to riskier options trades.
This isn’t just about F&O, by the way. These measures also explain the spectacular increase in crypto F&O volumes. Crypto F&O exists in a grey zone where it’s neither legal nor illegal, and traders can get as much as 100x to 300x leverage on many of these contracts. In the last couple of weeks alone, I’ve come across multiple new platforms advertising crypto F&O contracts, including perpetual futures, none of which are regulated. That’s another unintended consequence of these regulatory measures.
The larger point I’m making is that any regulatory or taxation change has second- and third-order effects. These changes fundamentally alter market structure, and not always for the better, as the recent measures show. The risks always show up in the most unexpected places. And they show up especially in market phases like this one, when markets fall or trade sideways, and liquidity starts to evaporate. That shows up as wider spreads, higher impact costs, and a further drop in trading volumes.
This is perhaps one of the biggest challenges in regulating markets. Indian markets are no longer a backwater, the recent bear phase notwithstanding. We need careful thinking about second- and third-order effects, and thoughtful regulatory design and calibration.
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[Career Update]
Since the time I started building in web3 I always wanted to build a product that my friends and family could understand and use. That's why I launched @ragafinance. But, we had to close our venture as we were not able to achieve PMF.
Afterwards I was searching for the next thing that I could work on to fulfill my initial aim of onboarding Indians to a world class infrastructure. That's when @Nav0x1 reached out to me regarding @BL_labs_xyz .
We worked together in Persistence (which was my first crypto company), and thus it was no brainer when it comes to working together.
Then, I met the team @_enjay420, @hanzo_0x and @djangohl and I was hooked instantly on the vision and moreover bullish on all the cofounders.
It has been more than 2 months now and everyday is challenging building India's next exchange from scratch but it is rewarding in itself.
If you are around @EFDevcon and wants to talk about trading compliantly in India and having access to US equities via @HyperliquidX, dm me.
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enjay.hl retweeted
Perps have grown a lot on-chain, but options are still catching up.
We looked at why that is and what Hyperliquid could change.
Co-written with @hypurr_co
Read our latest article: hypurr.co/blog-posts/uncoil-…
#HYPE #Hyperliquid
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enjay.hl retweeted
Ironically, the best way to deal with $HYPE is to pretend it is not, in fact, tradeable or transferable.
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This is is extremely @BL_labs_xyz coded, India needs a house of finance it can trust.
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enjay.hl retweeted
at @BL_labs_xyz we're building exactly that.
@HyperliquidX needs an entry into the Indian ecosystem and to tap into the biggest derivatives market in the world, we make it happen with the right regulations, ensuring access to billions of people.
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