HPC Teams Up with trade.xyz to Write to the SEC: Proposing the Launch of "Pre-IPO Perpetual Contracts"

BlockBeats News, August 18th. According to an official announcement, the Hyperliquid Policy Center (HPC) and trade[XYZ] have submitted a joint opinion letter to the U.S. Securities and Exchange Commission (SEC), proposing the introduction of "IPO Pre-Listing Perpetual Contracts" (IPOP), to provide a public continuous price discovery mechanism for companies about to go public.

It is explained that IPOP allows traders to engage in long and short trading around a company's stock price in the weeks leading up to its expected listing, without entitling holders to any shares, allocation, voting rights, or other interests in the issuer. This product will cease operation after the company goes public.

The two parties stated that trade[XYZ] had previously launched 5 IPOP markets on Hyperliquid, with the U.S. IPO offering price being 10.8% to 38.4% lower than the IPOP price on the day before the IPO, and the relevant markets had accurately reflected the stock's opening price post-listing. The parties have recommended that the SEC focus on regulatory classification, disclosure requirements, listing qualifications, market integrity, and accessibility to U.S. investors regarding IPOP.