Capital Markets Alliance Files Suit Challenging CFTC Approval of Single-Stock Perpetual Derivatives
The complaint says the approvals lack a legal basis and could weaken investor protections as Cboe backs the challenge.
- On Tuesday, Commodity Futures Trading Commission Chair Michael Selig announced that perpetual futures on individual U.S. stocks can begin trading on properly registered commodity markets, marking the first time these derivatives have been authorized on U.S.-regulated exchanges.
- The approval aims to bring trading onshore, providing American traders with CFTC regulatory protections rather than offshore venues; President Donald Trump previously expressed interest in bringing Hyperliquid into the U.S. in a "fully compliant and legal fashion."
- Seeking to vacate the approvals, the Capital Markets Alliance —including Cboe Global Markets and Citadel Securities—filed a lawsuit yesterday, arguing these products are security-based swaps under the exclusive jurisdiction of the Securities and Exchange Commission .
- The CFTC and the SEC will share oversight of these contracts, with only exchanges registered with the SEC permitted to list them. Selig said the ruling "ensures that American investors and traders can access these products."
- Offshore exchange Hyperliquid generated approximately $713 million in revenue over the past year, while CME Group continues litigation against the agency, citing systemic risks from high leverage on offshore platforms ranging from 25 to 250 times.
51 Articles
51 Articles
A type of derivative, known as a perpetual contract and tied to shares, received a green light from the US Commodity Futures Trading Commission (CFTC) to start trading. Exclusive material for subscribers. To have full access, access the link of the material and register.
Cointelegraph
The New York LedgerCFTC Greenlights Equity Perpetual Futures in the US
The CFTC cleared stock-linked perpetual futures for regulated US exchanges, but did not identify trading venues or launch dates.
The CFTC Just Cleared Stock Perpetual Futures for U.S. Exchanges. Does That Hurt Hyperliquid?
The post The CFTC Just Cleared Stock Perpetual Futures for U.S. Exchanges. Does That Hurt Hyperliquid? appeared first on 24/7 Wall St..The Commodity Futures Trading Commission (CFTC), which regulates futures markets in the U.S., has recently approved stock perpetual futures. This means that contracts based on individual stocks can now begin trading for the first time on CFTC-registered exchanges. This decision sets up a regulated alternative to …
PR Newswire
Traders MagazineCboe Joins Capital Markets Alliance Challenge to CFTC Approval of Single-Stock Perpetual Derivatives
/PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), a leading global markets operator and pioneer in equity and index derivatives, today issued the...
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