‘Shadow Stocks’: Wall Street Watchdog Fights Massive CFTC Stock Perps Push

The challenge targets the CFTC’s push to let these perpetual derivatives—dubbed “shadow stocks”—trade outside traditional securities rules. The dispute matters because it could determine whether retail traders get swap-level safeguards or a lighter CFTC regime for 24/7 stock-linked perps. Watch for the court’s view on whether single-stock perps legally qualify as swaps, and how that ruling shapes the CFTC’s approval process and the products exchanges can list.