Cboe Global Markets challenges CFTC over perpetual derivatives approval

Cboe Global Markets shares declined 0.90 percent to $346.06 following the announcement that the company is joining a legal challenge against the Commodity Futures Trading Commission (CFTC).

Cboe has partnered with the Capital Markets Alliance (CMA), which includes Citadel Securities and the Healthy Markets Association, to contest the CFTC’s approval of perpetual derivatives tied to individual U.S. stocks and exchange-traded funds (ETFs). These contracts allow investors to gain exposure to underlying securities without direct ownership.

The legal action seeks to challenge the regulatory basis for allowing these products within CFTC-supervised markets. Cboe argues that securities-related products should be subject to established securities market regulations, maintaining that existing securities laws provide necessary protections for market participants that may be absent under current CFTC oversight.