Cboe, Citadel Securities and Healthy Markets Sue CFTC Over…
By Abdelaziz Fathi
AI summary of the source article
The Capital Markets Alliance Association, including Cboe and Citadel Securities, has sued the CFTC over its approval of stock perpetual futures. The group argues the products fall under SEC oversight rather than the CFTC's security futures framework.
Why it matters
"The legal classification will determine which regulatory framework governs stock perpetuals, including applicable trading, surveillance and investor-protection requirements."
Key facts
- The Capital Markets Alliance Association sued the CFTC and Chairman Michael Selig over approvals involving KalshiEX, Bitnomial Exchange, and Coinbase Derivatives.
- The lawsuit argues stock perpetual contracts are security-based swaps subject to SEC oversight, not security futures under CFTC jurisdiction.
- US District Judge Valerie Caproni denied an emergency trading halt but found the alliance likely to succeed on claims that the CFTC exceeded its statutory authority.
Source excerpt · FinanceFeeds
CFTC Stock Perpetual Approvals Face Lawsuit as Judge Questions Authority The Commodity Futures Trading Commission's decision to allow perpetual derivatives tied to individual US stocks faces a legal challenge from a Wall Street-backed industry group, with a federal judge already questioning whether the regulator has the statutory authority to approve the products. The Capital Markets Alliance Asso…