Analysis · Regulation & Policy
A legal fight led by Cboe and Citadel Securities challenges CFTC Chairman Selig's move to permit perpetual futures on individual US stocks.
Key point 1 of 3
01
CFTC Chairman Selig authorized dually registered exchanges to list perpetual futures on individual US stocks on Nov. 3.
Key point 2 of 3
02
A coalition including Cboe and Citadel Securities sued the CFTC, alleging equity perps bypass critical federal securities safeguards.
Key point 3 of 3
03
Judge Caproni denied an emergency trading halt but noted the alliance was likely to succeed on claims the CFTC exceeded its authority.
Context
Perpetual swaps were invented by BitMEX in 2016 for Bitcoin speculation without expirations. On Nov. 3, the CFTC permitted single-stock perpetual futures under the CFMA framework,…
Why it matters
Traders gain access to 24/7 continuous leverage on US equities, while Cboe and traditional venues face potential order flow diversion toward CFTC-regulated futures platforms like…
What to watch
District Judge Caproni's pending ruling on the preliminary injunction and the SEC's forthcoming final review of exchange listing rules.
Sources
Built from 4 primary sources, machine-checked before publication.
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