SEC Backs CFTC in Court Fight Over Perpetual Futures on US Stocks
By Damian Chmiel
AI summary of the source article
The SEC filed a court brief siding with the CFTC, urging a judge not to block perpetual futures on US stocks. The lawsuit, filed by the Capital Markets Alliance Association, argues the contracts are security-based swaps requiring SEC approval.
Why it matters
"The case will decide where US retail traders get leveraged exposure to single stocks: on CFTC-regulated venues or on SEC-supervised exchanges."
Key facts
- The SEC urged a federal judge not to block perpetual futures on US stocks allowed by the CFTC.
- The Capital Markets Alliance Association sued on November 3, claiming the contracts are security-based swaps under SEC jurisdiction.
- Kalshi started offering perpetual contracts on approximately 50 US stocks and ETFs on November 5.
Source excerpt · Finance Magnates
The top US securities regulator has sided with the Commodity Futures Trading Commission (CFTC) in a court fight over perpetual futures on US stocks. In a brief filed on Monday, the Securities and Exchange Commission (SEC) urged a judge not to block them. The challenge comes from the Capital Markets Alliance Association, whose members include Cboe and Citadel Securities. It sued in Manhattan on Nov…