Group Backed by Cboe, Citadel Securities Sues CFTC -- WSJ

By Vicky Ge Huang

Trade group Capital Markets Alliance sued the Commodity Futures Trading Commission Tuesday to halt the derivatives regulator's approval of single-stock perpetual futures contracts.

The lawsuit came shortly after the CFTC approved the trading of perpetual futures contracts tied to individual stocks on regulated venues. The Capital Markets Alliance includes derivatives exchange Cboe Global Markets and market maker Citadel Securities.

In its suit, filed in the U.S. District Court for the Southern District of New York, the CMA argues that the CFTC misclassified single-stock perpetuals as security futures, when they legally qualify as security-based swaps, a product category that falls under the jurisdiction of the Securities and Exchange Commission.

"Our markets should be governed by law, not litigation campaigns intended to block innovation," a CFTC spokesman said.

Perpetual futures contracts are a type of derivative that never expires and lets traders use leverage that can amplify their potential gains and losses. They grew out of the crypto markets and have dominated crypto trading overseas. This year, perpetual futures tied to traditional assets such as stocks, commodities and precious metals exploded in popularity as traders flocked to trade on the decentralized exchange Hyperliquid.

Prediction-markets platform Kalshi has already soft launched four single-stock perpetual futures contracts tied to McDonald's, Costco Wholesale, Qualcomm and Amgen, with plans to expand the roster over the next few days, according to a Kalshi spokesman. Intercontinental Exchange, owner of the New York Stock Exchange, said last week that it plans to bring Hyperliquid-based perpetual futures to the U.S., pending regulatory approval.

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(END) Dow Jones Newswires

November 03, 2026 18:07 ET (23:07 GMT)