CME Weighs Legal Action as CFTC Approves Perpetual Futures Trading

CME Group Chief Executive Terrence Duffy said the company intends to file a lawsuit against the U.S. Commodity Futures Trading Commission (CFTC) following its approval of perpetual futures contracts earlier this month.

In comments to CNBC, Duffy said the Kalshi perpetual futures product does not meet the definition of a futures contract under the Dodd-Frank Act. He argued that the instrument more closely resembles a swap, which falls under a separate regulatory framework.

He pointed to the act’s distinction between swaps and futures, noting that arrangements involving ongoing payment exchanges between counterparties are typically classified as swaps. On that basis, he questioned the CFTC’s decision to approve the product as a futures instrument.

Duffy, who is expected to step down next year, said CME would require clearer regulatory guidance before considering whether to launch perpetual futures offerings of its own. He added that current rules remain unclear.

He also criticized the regulator’s handling of recent market structure discussions, including 24/7 trading, suggesting that some proposals had been presented as finalized rules.

“There are a number of issues that need to be clarified,” Duffy said.

A CFTC spokesperson dismissed CME’s position, accusing the exchange operator of pursuing litigation rather than competing in the marketplace. The agency said it is prepared to defend its decision and expects the lawsuit to be unsuccessful.