Cboe and CMA Sue CFTC, Seek to Vacate Approval of Single-Stock Perpetual Contracts

Odaily reports: The Chicago Board Options Exchange (Cboe) has joined industry organization Capital Markets Alliance (CMA) in a lawsuit against the U.S. Commodity Futures Trading Commission (CFTC), challenging its approval of perpetual derivatives on U.S. single stocks. CMA has filed suit in the U.S. District Court for the Southern District of New York, seeking to vacate the relevant approval and to have such products classified as security-based swaps; CMA is also seeking to enjoin the approval from taking effect during the litigation. The lawsuit involves single-stock perpetual contracts from Coinbase, Kalshi, and Bitnomial. Cboe CEO Craig Donohue stated that single-stock perpetual derivatives should trade on platforms regulated under U.S. securities law. The CFTC previously announced on November 3 that single-stock perpetual contracts could begin trading on registered exchanges effective immediately.