Cboe Backs Lawsuit Challenging CFTC Approval of Stock Perpetual Derivatives

Cboe Global Markets announced on Nov. 3, 2026, that it has joined a legal action initiated by the Capital Markets Alliance challenging the Commodity Futures Trading Commission's approval of perpetual derivatives based on U.S. equities and exchange-traded funds ¹. The alliance includes market participants such as Cboe, Citadel Securities, and the Healthy Markets Association ¹.

The litigation requests injunctive relief to halt the offering of single-stock perpetual instruments on CFTC-supervised venues ¹. Cboe Chief Executive Officer Craig Donohue stated that the agency's approvals bypass investor protection standards established under federal securities laws for more than nine decades ¹. Donohue stated that products linked to single issuers, equity indices, or corporate outcomes belong exclusively on securities platforms regulated under statutory securities frameworks, rather than commodities venues ¹.

Allegations of Regulatory Arbitrage

Cboe contended that the CFTC permitted multiple securities-related derivatives without publishing a clear legal foundation, running contrary to historical precedent and earlier agency decisions ¹. The exchange operator rejected assertions that its objections are commercially driven, noting that it already owns and operates CFTC-regulated trading and clearing facilities where it could list comparable products if permitted ¹.

Instead, the coalition asserted that listing equity contracts on commodities venues fosters regulatory arbitrage and avoids federal and state investor safeguards ¹. Cboe noted that earlier attempts to resolve these jurisdiction issues through regulatory forums, public comment periods, and direct discussions with lawmakers had failed to alter the agency's stance ¹.