Wall Street Group Sues Over CFTC’s Share-Linked Futures Decision

A coalition including Cboe Global Markets and Citadel Securities sued the U.S. Commodity Futures Trading Commission on Nov. 3 over contracts tied to individual company shares that have no set expiration date. The group wants the approvals overturned and their implementation paused while the case proceeds.

The contracts let investors take positions based on a share’s price without buying the stock directly. The coalition argues they should be treated as security-based swaps under the Securities and Exchange Commission’s authority, rather than futures.

The CFTC considers them security futures and says they fall under relevant rules. CFTC Chair Michael S. Selig has argued that trading them on regulated U.S. markets would offer investors another risk-management tool.