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CME Plans to Sue the CFTC Over Its Perpetual Futures Approval as a Michigan Judge Rebuffs the Agency on Prediction Markets
CME Group says the products are swaps under Dodd-Frank and plans to challenge the approval after Kalshi expanded perps into crypto markets.
- On Thursday, CME Group Inc. announced it will sue the Commodity Futures Trading Commission over the agency's approval of perpetual futures; outgoing CME Group CEO Terrence Duffy confirmed the litigation on Wednesday.
- Duffy contends the approved products are actually swaps, not futures, under the Dodd-Frank Act, arguing these contracts involve two parties exchanging payments and require different regulatory standards.
- During a Wednesday interview, Duffy claimed the CFTC is "misrepresenting certain facts," pointing to a 24/7 trading release described as a rule when it was not, as CME Group challenges the Kalshi approval.
- Separately, a Michigan District Court judge ruled that sports prediction markets fall outside CFTC jurisdiction, complicating the agency's expansion under the Trump administration using the Dodd-Frank Act.
- With Sixth Circuit courts split, an appeals court will review the matter next month, with the Supreme Court likely serving as the final arbiter, while Duffy steps down next year.
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14 Articles
14 Articles
CME Plans to Sue the CFTC Over Its Perpetual Futures Approval as a Michigan Judge Rebuffs the Agency on Prediction Markets
CME Group intends to sue the Commodity Futures Trading Commission over its approval of perpetual futures earlier this month, CEO Terrence Duffy told CNBC on Wednesday, putting the largest US derivatives exchange in direct conflict with its own regulator. Duffy argued the CFTC‘s approval of Kalshi‘s perpetual futures did not meet the Dodd-Frank Act’s requirements for swaps. “Under the Dodd-Frank Act, it clearly defines what a swap is and what a f…
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Coverage Details
Total News Sources14
Leaning Left2Leaning Right0Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 33%
C 67%
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