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

The amicus curiae brief, filed by Better Markets, former SEC Commissioner Allison Herren Lee, and Harvard Law Professor John C. Coates, argues that single-stock perpetual futures constitute swaps—and, consequently, bypass current Dodd-Frank Act protections for retail investors under the CFTC’s new rules. The legal battle over the CFTC’s decision to allow perpetual derivatives on individual U.S. stocks is heating up, and third-parties are now raising their voices. Better Markets, an organization that “fights for a financial system that serves society and supports the productive economy,” has filed a friend-of-the-court (amicus curiae) brief to back the Capital Markets Alliance’s (CMA) challenge to the Commodity Futures Trading Commission’s (CFTC) approval of perpetual derivatives on individual U.S. stocks.

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