CME, Cboe Sue CFTC Over Kalshi Stock Perpetuals as Agency Opens First U.S. Short Bets
Updated
Updated · The New York Times · Nov 12
CME, Cboe Sue CFTC Over Kalshi Stock Perpetuals as Agency Opens First U.S. Short Bets
1 articles · Updated · The New York Times · Nov 12
Summary
Chicago Mercantile Exchange and Cboe Global Markets sued the CFTC after it authorized Kalshi to offer perpetual trades on individual stocks, cryptocurrencies and other assets to U.S. customers.
The approvals, issued in a series of decisions starting in May, let traders wager on price moves without owning the asset or settling by a fixed date — the first such products cleared for Americans.
The exchanges argue the CFTC broke federal investor-protection rules and gave Kalshi an unfair edge, warning the structure could heighten insider-trading, manipulation and other abuse risks.
Kalshi had pushed aggressively for the launch, even planning an April event before filing formally, as CFTC Chairman Michael S. Selig signaled support and reversed years of agency policy.