{"text":[[{"start":9.6,"text":"Wall Street’s market regulator has delayed the approval of futures contracts that allow traders to bet on the rental price of AI chips, in a setback for exchanges vying to launch the first futures market for computing power."}],[{"start":22.76,"text":"The Commodity Futures Trading Commission is extending the review period of such contracts by at least 60 days, meaning trading activities are postponed at least until early 2027, according to people familiar with the commission’s thinking. The decision has not been made public."}],[{"start":38.8,"text":"CME Group, one of the world’s largest derivatives exchanges, had earlier hoped to launch graphics processing unit futures linked to the rental price of two types of popular Nvidia chips — H100 and B200 — as soon as early October, using indices devised by start-up Silicon Data."}],[{"start":57.44,"text":"The delay comes as the regulator sought public comments on how to manage risks in the nascent market for computing power, which has quickly become the hottest market for derivative trading."}],[{"start":67.04,"text":"Online marketplaces exist to trade spot prices for computing power, but there are no publicly traded futures markets for longer-dated contracts."}],[{"start":75.24,"text":"In its request for comments in August, the CFTC has raised concerns that the nascent asset class could be vulnerable to price manipulation, given the opaque nature of GPU rental prices and the dominance of a handful of suppliers. It also sought assurances that exchanges could monitor prices derived from privately negotiated deals."}],[{"start":94.88,"text":"A person familiar with CFTC’s decision said the agency is planning more meetings with benchmark providers to discuss those concerns."}],[{"start":103.36,"text":"“This market is brand new and AI dominance is extremely important for this [administration’s] agenda,” the person said. “We want to make sure we get this right out of the gate and we aren’t going to be pressured by Wall Street to move this before it’s ready.”"}],[{"start":117.24,"text":"The CFTC declined to comment."}],[{"start":119.68,"text":"Intercontinental Exchange and prediction market Kalshi have also announced plans to launch similar products. Meanwhile, global trading firms have been hiring specialists and developing investment strategies to capitalise on the fast-growing market for AI computing power, betting that it could one day rival the vast market for oil futures."}],[{"start":138.24,"text":"Trading powerhouse DRW, Jump Trading, crypto trading exchange Hyperliquid and venture capital firm Andreessen Horowitz are also among the companies that have submitted public comments supporting the rollout of AI computing contracts. Andreessen said in a comment letter that the absence of a domestic futures market would push price discovery to “fragmented or offshore venues”."}],[{"start":162.16,"text":"Advocates for the product believe a liquid futures market could allow companies to lock in the price for AI computing power and hedge the risks against rising GPU rental costs or depreciation in chip value. It could also help lenders financing AI chips evaluate the value of their collateral using real-time market prices."}],[{"start":181.56,"text":"However, some industry participants worry indices that are built from unverified listings, especially those from thinly traded retail platforms, are unreliable."}],[{"start":191.72,"text":"“Manipulation of indices based on transactions from on-demand and short-term rental marketplaces is likely only a matter of time,” Andrawes Bahou, chief executive officer of AI start-up Compute Desk, said in a comment letter. “The price observations are small, thin and cheap to move.”"}],[{"start":209.36,"text":"“In principle, it is a useful financial product,” said Tomasz Piskorski, a finance professor at Columbia Business School. “The issue is around index construction. When you buy something less liquid, there are issues around whether this can be manipulated to create perception of demand. There could be a possibility of certain affiliated entities trading with each other.”"}],[{"start":234.36,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1794358992_3415.mp3"}