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Worth noting Market event Wed, Nov 4 1 min read
Cboe Global Markets and Citadel Securities filed a lawsuit seeking to overturn the Commodity Futures Trading Commission’s approval of stock perpetual futures for US exchanges, reportedly hours after the approval.[1]
The CFTC regulates US futures markets. Stock perpetual futures are contracts linked to stock prices with no fixed expiration date, allowing traders to take positions on share-price movements. The report establishes that the lawsuit was filed but provides no court ruling or order suspending the approval.[1]
The legal challenge makes it harder for US exchanges and brokers offering trading access to judge when these contracts could generate revenue. If litigation delays trading, associated fees would arrive later, making returns on trading systems and support services less predictable.[1]
The report also raises a possible benefit for offshore platform Hyperliquid: if US competitors face delays, some trading activity could remain on offshore venues for longer. That advantage depends on whether the lawsuit actually slows the US market’s development.[1]
Exchanges planning to offer stock perpetual futures and their brokerage partners face less certain business timing. Any litigation-driven delay would push back trading fees and returns on related systems spending.[1]
Platforms such as Hyperliquid could have more time to attract traders and volume if the lawsuit slows US competitors. The report raises this possibility without establishing that trading volume has shifted.[1]