The CFTC has authorized perpetual futures tied to individual stocks to trade on exchanges registered with the agency. Chairman Michael Selig said the products are classified as security futures and are therefore subject to the Commodity Exchange Act and federal securities laws. Exchanges seeking to list them must also file notice with the SEC, placing the market under the oversight of both agencies. Hours after the announcement, the Capital Markets Alliance, backed by Cboe and Citadel Securities, sued the CFTC, arguing that the agency lacked authority to make the decision. The lawsuit follows the CFTC’s June approval of Bitcoin perpetual futures, which was also challenged by the CME Group.
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