US court denies request for temporary injunction to block single-stock perpetual futures trading

A U.S. federal judge in the Southern District of New York denied the Capital Markets Alliance Association's request for a temporary restraining order that would have paused CFTC approval of single-stock perpetual derivatives, ruling the plaintiff failed to show imminent irreparable harm to its members. The court nonetheless signaled the association may prevail on its claim that the CFTC lacks authority to approve the products as security futures, finding the contracts appear to fit the definition of swaps regulated by the SEC. The CFTC must respond to the preliminary injunction motion by November 6, with the plaintiff's reply due November 10, though the presiding judge may adjust the schedule. The ruling matters because it keeps single-stock perps on track for U.S. trading while leaving unresolved the jurisdictional question over whether the CFTC or SEC should oversee them.