Key facts
- Theodore Gillibrand, son of Senator Kirsten Gillibrand, has raised $30 million for a new exchange.
- The exchange, American Perpetuals Exchange Corporation (APEC), plans to seek joint oversight from the SEC and CFTC.
- APEC aims to list single-name equity perpetuals, a market currently operating offshore.
- The company is also seeking a Derivatives Clearing Organization (DCO) license.
- The funding round was led by venture firm Lux Capital at an estimated $300 million valuation.
Theodore Gillibrand, son of Senator Kirsten Gillibrand, has secured $30 million in funding for a new exchange, American Perpetuals Exchange Corporation (APEC), which aims to operate under the joint oversight of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The venture, reportedly valued at $300 million, plans to file for a license to list perpetual futures on single-name equities, a market currently dominated by offshore platforms.
APEC's strategy involves seeking a Designated Contract Market (DCM) license with a special exemption, leveraging the ongoing collaboration between the CFTC and SEC to harmonize their regulatory approaches to novel markets. This move comes amid regulatory scrutiny and legal challenges, such as CME Group's lawsuit against the CFTC over approvals granted to Kalshi and Coinbase for listing perpetuals.
According to a memo from a June 4 meeting, APEC's leadership believes that the absence of a regulated U.S. venue for equity perpetual futures drives demand to unregulated offshore platforms. The company also intends to apply for a Derivatives Clearing Organization (DCO) license to handle its own transaction clearing. The memo emphasizes the need for significant capital infusion to meet licensing requirements, build compliance infrastructure, and gain a market edge as the first regulated perpetuals exchange.
Gillibrand is a Stanford graduate and has prior experience in venture capital, including an internship at Andreessen Horowitz and a role at Paradigm, a known backer of Kalshi. Senator Gillibrand herself is a proponent of crypto industry innovation, having collaborated with Senator Cynthia Lummis on legislation aimed at financial innovation.