ASA Presses Court to Halt Stock Perpetuals, Putting Retail Risk at Center of Fight
The American Securities Association filed a court brief supporting a pause in US single-stock perpetuals, arguing that leverage, forced liquidations and thin-session trading could harm retail investors and affect underlying shares. The filing adds to the Capital Markets Alliance’s challenge to the CFTC’s authority to approve the products. The CFTC argues that offering them through regulated domestic markets provides access to tools for risk management and price discovery. A judge previously denied emergency relief because the plaintiff had not shown imminent, irreparable harm, while finding its statutory-authority argument likely to succeed at that stage. The court has not yet ruled on ASA’s request or resolved the legality of the products.
