Ford O’Brien Landy LLP Founding Partner Adam C. Ford serves as Secretary of the Capital Markets Alliance (CMA), which has brought a federal lawsuit challenging the Commodity Futures Trading Commission’s (CFTC) approval of single-stock perpetual futures contracts.
The challenge concerns the regulatory treatment of financial products tied to individual U.S. stocks and whether the CFTC exceeded its statutory authority in permitting their trading.
On November 3, 2026, U.S. District Judge Valerie Caproni declined to issue a temporary restraining order that would have halted trading in the products. However, the Court indicated that CMA was likely to succeed on the merits of its argument that the CFTC exceeded its statutory authority.
The dispute raises significant questions about the division of regulatory authority between the CFTC and the Securities and Exchange Commission (SEC). CMA argues that the products qualify as security-based swaps, which fall under the SEC’s jurisdiction, rather than security futures that may be regulated by the CFTC.
CMA maintains that permitting these products to trade outside established securities regulations could undermine investor protections and create uncertainty in U.S. financial markets.
Although the Court declined to halt trading at this preliminary stage, its assessment of CMA’s legal arguments represents an important development in the ongoing litigation. The ruling does not constitute a final determination of the CFTC’s authority, and the legal challenge remains pending.
Ford’s involvement with CMA reflects his continued engagement with complex financial litigation, securities regulation, and matters affecting U.S. capital markets.
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