HPC and trade.xyz Recommend SEC to Introduce Pre-IPO Perpetual Contracts

The Hyperliquid Policy Center (HPC) and trade.xyz have submitted a joint letter to the U.S. Securities and Exchange Commission (SEC), suggesting the introduction of "Pre-IPO Perpetual Contracts" (IPOP) to provide a public continuous price discovery mechanism for companies preparing to go public. IPOP allows traders to engage in long and short trading around the stock price of a company weeks before its expected listing, but does not grant holders any shares, allocations, voting rights, or other rights against the issuer; this product will cease to operate after the company goes public. Previously, trade.xyz launched five IPOP markets on Hyperliquid that completed their entire lifecycle, showing that U.S. IPO offering prices were 10.8% to 38.4% lower than the IPOP price the day before the IPO, with the related markets accurately reflecting the opening prices of stocks after listing. Both parties recommend that the SEC focus on regulatory classification, information disclosure, listing qualifications, market integrity, and accessibility for U.S. investors regarding IPOP.

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