Cboe Joins Legal Challenge Against CFTC Approval of Single-Stock Derivatives

Cboe Global Markets has joined the Capital Markets Alliance—a coalition including Citadel Securities and the Healthy Markets Association—to challenge the Commodity Futures Trading Commission (CFTC) in federal court. The legal action contests the regulator's recent approval of perpetual derivative products linked to U.S. stocks and ETFs.

Craig Donohue, CEO of Cboe, stated that the move is intended to protect the regulatory framework governing U.S. securities. The company argues that securities-related products should be traded on regulated securities exchanges subject to investor protections established by Congress, rather than on platforms governed by commodity-focused oversight.

Cboe alleges that the CFTC has deviated from established precedent without providing a sufficient legal basis. By seeking injunctive relief, the coalition aims to resolve regulatory uncertainty and prevent what it describes as regulatory arbitrage that threatens the integrity of U.S. capital markets.