Cboe has joined a lawsuit brought by the Capital Markets Alliance against the U.S. Commodity Futures Trading Commission, challenging the regulator’s approval of single-stock perpetual derivatives tied to U.S. equities. The case was filed in the U.S. District Court for the Southern District of New York, where CMA is asking the court to vacate the approval and rule that these products should be treated as security-based swaps. During the litigation, the group is also seeking to block the approval from taking effect. The dispute covers single-stock perpetual contracts offered by Coinbase, Kalshi and Bitnomial. Cboe CEO Craig Donohue said single-stock perpetual derivatives should trade on platforms regulated under U.S. securities laws. The CFTC had announced on Nov. 3 that single-stock perpetual contracts could begin trading immediately on registered exchanges.
Cboe has joined a lawsuit filed by the Capital Markets Alliance, or CMA, against the U.S. Commodity Futures Trading Commission, challenging the agency’s approval of single-stock perpetual derivatives tied to U.S. equities.
CMA filed the case in the U.S. District Court for the Southern District of New York. It is asking the court to vacate the approval and rule that such products are security-based swaps. While the case is pending, CMA is also seeking to stop the approval from taking effect.
The lawsuit involves single-stock perpetual contracts from Coinbase, Kalshi and Bitnomial. Cboe Chief Executive Officer Craig Donohue said single-stock perpetual derivatives should trade on platforms regulated under U.S. securities laws.
The CFTC said earlier on Nov. 3 that single-stock perpetual contracts could begin trading immediately on registered exchanges.
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