Update
Cboe and Citadel Group Sue CFTC Over US Stock Perpetual Futures Approval
The Capital Markets Alliance, an industry group backed by Cboe and Citadel Securities, has filed a federal lawsuit challenging the Commodity Futures Trading Commission's (CFTC) approval of perpetual derivatives tied to individual US stocks. The lawsuit seeks to overturn the approvals and prevent the CFTC from allowing the contracts to trade while the case proceeds. The group argues that the products qualify as security based swaps, placing them under the Securities and Exchange Commission's (SEC) exclusive jurisdiction. The CFTC approved the contracts as security futures under the Commodity Futures Modernization Act of 2000, making them subject to oversight by both the CFTC and SEC. The dispute follows a separate announcement from CFTC Chairman Michael Selig allowing perpetual futures on individual US stocks to begin trading on qualifying regulated exchanges.