The CFTC authorized trading in perpetual contracts on individual stocks on U.S. regulated exchanges after letting its 45-day review period expire without a written order. Hours later, the Capital Markets Alliance, which includes Cboe and Citadel Securities, filed a lawsuit in Manhattan federal court seeking to void the approvals and suspend the products during the proceedings. The alliance argues that the contracts, which use funding payments and have neither a delivery date nor an expiration, fall exclusively under the SEC’s jurisdiction as security swaps. It also challenges the CFTC’s failure to explain its approval process and asks the court to bar any future approvals through self-certification. Kalshi already lists perpetual contracts on roughly 50 stocks and ETFs with maximum leverage of 4.9 times, while Coinbase Derivatives and Bitnomial have not yet opened their order books.
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