Brokers see buying opportunity after stock exchanges dip on single-stock perpetual futures approval

Intercontinental Exchange

Today 12:22

** Shares of Cboe Global CBOE.Z, CME Group CME.O, Nasdaq NDAQ.O and Intercontinental Exchange ICE.N were pressured on Tuesday after a US regulator cleared path for single-stock perpetual futures to trade in the US as security futures products 
** TD Cowen sees weakness as a buying opportunity for CBOE, NDAQ and CME
** Piper Sandler says move is constructive for derivatives venues looking to bring crypto-style products onshore and a major step for challenger venues
** In our view, it's more of an opportunity to bring a new cohort of risk-seeking retail traders into US equity markets than an immediate threat to traditional exchanges' equity and options businesses - Piper Sandler analysts led by Patrick Moley 
** Perpetual futures are never-expiring derivatives products, allowing traders to hold positions indefinitely without rolling them over 
** Cboe, Citadel Securities-backed group filed a federal lawsuit on Tuesday, aiming ​to block US Commodity Futures Trading Commission from authorizing single-stock perpetual futures

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))