Cboe, Citadel Securities and Others Sue CFTC, Seeking to Void Single-Stock Perpetual Approval

Nov. 4: According to an official Cboe announcement, the Chicago Board Options Exchange (Cboe) has joined the industry group Capital Markets Alliance (CMA) in a lawsuit against the U.S. Commodity Futures Trading Commission (CFTC), challenging the CFTC's approval of perpetual derivatives on individual U.S. stocks. CMA members include Cboe, Citadel Securities and the Healthy Markets Association. CMA has filed suit in the U.S. District Court for the Southern District of New York, seeking to vacate the approval, have such products ruled security-based swaps, and block the approval from taking effect during the litigation.

According to The Defiant, the challenged approval involves single-stock perpetual contracts from Coinbase, Kalshi and Bitnomial. Cboe CEO Craig Donohue said single-stock perpetual derivatives should trade on platforms regulated under U.S. securities laws. Previously, on Nov. 3, the CFTC announced that single-stock perpetual contracts could begin trading on registered exchanges with immediate effect.