Court Rejects CMA's Request to Suspend Single-Stock Perpetual Contracts, Says CFTC Overreach Claim Likely to Succeed

Odaily reports: Valerie Caproni, a judge in the U.S. District Court for the Southern District of New York, denied a request for a temporary restraining order filed by the industry group Capital Markets Alliance (CMA). The court found that the plaintiffs failed to demonstrate that their members would suffer imminent irreparable harm; at the same time, the court held that CMA's claim that the U.S. Commodity Futures Trading Commission (CFTC) overstepped its authority is likely to succeed, and noted that the contracts in question do not appear to meet the definition of "security futures" and are closer to swaps regulated by the U.S. Securities and Exchange Commission (SEC).