CMA Sues CFTC Over Single-Stock Perpetuals

The Capital Markets Alliance (CMA), backed by Cboe, Citadel Securities and the Healthy Markets Association, has sued in the Southern District of New York to vacate, meaning set aside, the Commodity Futures Trading Commission (CFTC) approval of perpetual futures on individual equities. Perpetual futures are futures contracts with no expiry date. The CFTC announced the position on 3 November 2026. The government’s response is due on 6 November 2026 and the CMA’s reply on 10 November 2026.

In a statement on 3 November 2026, CFTC Chairman Selig said: “Today, perpetual futures contracts on individual equity securities (the “Equity Perps”) can begin trading for the first time on CFTC-registered exchanges.” The statement said the products were deemed approved under Commission Regulation 40.3, the CFTC rule on product approvals, as security futures products. These are futures on a single security, defined in the Commodity Futures Modernization Act of 2000 (CFMA). The CFTC said they remain subject to the Commodity Exchange Act, federal securities laws and both CFTC and Securities and Exchange Commission (SEC) frameworks. It added that the two agencies entered a memorandum of understanding earlier in 2026.

According to The TRADE, the CMA alleges the approval breached the Administrative Procedure Act (APA), the law governing how federal agencies make decisions, and says the CFTC gave “no explanation for its decision”. It argues the products are security-based swaps, derivatives on a single security that fall under the SEC’s exclusive jurisdiction. The complaint asks the court to vacate the approvals, declare the products security-based swaps, and bar the CFTC from giving the approvals effect while the case runs. Adam Ford, Secretary of the CMA, said: “Coherent regulatory oversight underpins the global pre-eminence of US securities markets.” Craig Donohue, chief executive of Cboe, said: “This issue, however, is about investor protection for securities trading and the rule of law.”

Judge Caproni denied a temporary restraining order (TRO), an emergency short-term court order, because the alleged harms did not warrant emergency relief. The judge nonetheless indicated the CMA will likely succeed. Operators planning to list or offer US equity perpetuals face legal uncertainty while the dispute over SEC or CFTC oversight runs.