A group representing Cboe Global Markets and Citadel Securities sued to reverse the approval, arguing that the regulator wrongly classified the contracts and downplayed their risks.
The US Commodity Futures Trading Commission approved perpetual futures tied to individual stocks the previous week, Reuters said on 9 November 2026. The decision follows the regulator’s May approval of US-listed crypto perpetual futures.
A group representing Cboe Global Markets and Citadel Securities sued the previous week to reverse the stock-contract approval. It argues that the commission wrongly classified the products as futures, creating unfair competition and downplaying their risks.
Perpetual futures began in offshore crypto markets. They trade around the clock and do not expire, so investors can hold positions indefinitely. Traditional futures, by contrast, let parties lock in a transaction price for a later date.
Exchanges argue that perpetual contracts are swaps under the 2010 Dodd-Frank Act because they do not expire and involve ongoing funding payments between the parties. Swaps involve periodic exchanges of cash flows or liabilities based on a benchmark. They face tougher requirements for margin—the money or collateral used to back a position—as well as capital and reporting, and are generally less accessible to individual investors.
The commission has said the contracts have features like futures and that their funding mechanism substitutes for expiration.
Executives interviewed by Reuters said futures-style margin requirements might be inadequate for products that behave more like swaps. They warned that, during intense volatility, this could increase the risk that a counterparty cannot meet its obligations and make it harder to trade. Some also said automatic closure of positions when margin falls too low could amplify market stress.
The commission declined to comment on the concerns raised in the interviews. Separately, futures market operator CME Group is suing to overturn the crypto-contract approval, also arguing that the regulator misclassified the products, created unfair competition and downplayed risks. Both challenges seek to reverse the respective approvals.
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