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The CFTC of the United States rebuts the lawsuit qualification of CME: stating that it has not reasonably explained how the perpetual contract policy caused financial harm

The U.S. Commodity Futures Trading Commission (CFTC) stated in its latest court filing that CME only claims increased competition without reasonably explaining the existence of imminent financial harm, which is insufficient to qualify for a lawsuit challenging its perpetual contract policy. The CFTC pointed out that after the policy adjustment, CME's cryptocurrency futures trading volume has actually increased.In May of this year, the CFTC approved Kalshi's first Bitcoin perpetual contract and stated that it would regulate such products on a case-by-case basis under futures regulations. CME, on the other hand, believes that perpetual contracts do not have an expiration date and should be classified as swaps rather than futures, subject to a different regulatory framework. Last month, the CFTC requested a federal judge to dismiss the case, and this filing further elaborated on its rebuttal to CME's standing in the lawsuit.The CFTC also noted that CME had previously informed investors that it had not heard customer demand for perpetual contracts, and that such products could not replace its existing futures, and that it should not take different positions in court and during earnings calls. TD Cowen policy analyst Jaret Seiberg believes that CME may still have the upper hand regarding its standing in the lawsuit and the argument that the products should be classified as swaps. However, he is concerned that if the perpetual contract market continues to grow during the litigation, it may become more complicated to dismantle this market if CME wins.

first_img Robinhood's social trading feature is open to qualified users in the United States and will be available on the Legend desktop platform

Robinhood announced that its social trading network is now open to all eligible users in the United States. CEO Vlad Tenev stated on October 13 that this feature is built into the app's information feed, centered around users' trades and performance. Users can follow other traders, view shared account activities, and initiate eligible trades directly from posts through the Quick trade feature. Tenev mentioned that Robinhood Social is now available to everyone, allowing users to share charts, profits and losses, and portfolio allocations, as well as receive news and company updates.This feature was previously tested starting on March 18, initially for 1,000 customers who attended the HOOD Summit, followed by an additional 10,000 in the subsequent weeks. The early version provided verified trading posts, daily and yearly profit and loss statistics, and the ability to place orders manually from the information feed; news feeds are part of future planning. Sharing is selective: trades will not be automatically published, and customers can choose which eligible trades to publish, as well as disable trading statistics in their profiles.Access and publishable content are restricted. Social is only available in the United States, and Robinhood excludes licensed securities professionals, individuals associated with regulated financial institutions, and the company's own employees. Its help page indicates that futures and multi-leg options trades currently do not meet publishing criteria. Tenev stated that Social will be coming to Robinhood's desktop trading platform Legend in the coming weeks.
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