By John, Founder & CEO, TradeShield Labs

On November 3, the US Commodity Futures Trading Commission said perpetual futures on individual stocks can trade on CFTC-registered exchanges for the first time ( CFTC statement ). The contracts were deemed approved as security futures, so they fall under the regulatory frameworks of both the CFTC and the SEC ( CFTC press release ). Kalshi listed perps on four individual stocks the same day ( Kalshi ).

The approval is already being challenged in court. An industry group, the Capital Markets Alliance, whose members include Cboe, Citadel Securities and the Healthy Markets Association, sued in federal court in New York on November 3 to vacate it ( Cboe ). The judge denied the group's request for a temporary restraining order the same day, so trading continues, but wrote that the group is likely to succeed on its claim that the CFTC lacked authority to approve the contracts. Further briefing is scheduled for November 6 and November 10 ( court docket ).…