CME Group filed suit to void the CFTC’s May 29 approval of Kalshi’s perpetual futures, arguing the contracts should be classified as swaps under Dodd-Frank rather than futures. Kalshi has recorded over $5 billion in perpetual futures volume and CME shares are down about 9% since the lighter oversight approval.
On June 18 CME Group filed suit seeking to void the CFTC’s May 29 approval of Kalshi’s perpetual futures, challenging the regulator’s decision to classify the product as a futures contract. The complaint names the CFTC and its chair, arguing the move bypassed required swap regulations.
CME contends perpetual futures should fall under Dodd-Frank swap rules to ensure risk management and market stability safeguards. The exchange warns that treating perps as futures under lighter oversight undermines post-2008 financial crisis protections.
Kalshi has generated over $5 billion in perpetual futures trading volume, intensifying competition for established derivatives exchanges. CME shares have dropped roughly 9% since the approval, reflecting investor concerns over regulatory uncertainty and potential market integrity risks.
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