SEC Backs CFTC Approval of U.S. Single-Stock Perpetual Futures

The SEC has filed a court brief backing the Commodity Futures Trading Commission’s approval of U.S. single-stock perpetual futures, adding support as challengers seek to overturn the decision.

Submitted as an amicus brief, the filing disputes the argument that the CFTC exceeded its authority. The SEC says CFTC rule changes related to the products were subject to SEC review.

The brief also says the two commissions are cooperating on oversight of single-stock perpetual derivatives. The SEC’s position links that cooperation and review to the CFTC’s role in approving the products, putting coordination between the regulators at the center of its defense.

The dispute concerns the CFTC’s approval and the authority behind it. The SEC’s court submission backs the decision while addressing the claim that the CFTC acted beyond its powers. It also sets out the SEC’s view that related CFTC rules were subject to the commission’s review and that the two agencies are working together on oversight for the products in the court challenge.