Cooper Investors Cuts CME Group Stake After CFTC Approves Kalshi Perpetual Futures

Insider Monkey··US·Read original
3▲0 ▼1Impact / 5
Summary · why it matters

Cooper Investors reduced its position in CME Group after the Commodity Futures Trading Commission granted approval to prediction market operator Kalshi to launch "perpetual" futures, opening a competitive threat to CME's long-held monopoly futures franchises across benchmarks such as the S&P 500. The firm disclosed the move in its second-quarter 2026 investor letter for the Cooper Investors Global Equities Fund (Unhedged), which returned 6.6% for the quarter and -6.4% for the financial year. CME Group was the main detractor to the fund's Real Asset returns this year, and Cooper Investors said CME's competitive advantage rests on a combination of liquidity and regulation, with the regulatory leg now uncertain. CME Group closed at $264.48 per share on September 25, 2026, down 7.36% over the past month and 2.85% over the past 52 weeks, with a market capitalization of $95.1 billion and a 52-week trading range between $218.31 and $329.16. Cooper Investors said there are legal arguments against the viability of these products and that CME is pursuing those avenues.

Impact on assets 1

Carbon Removal (DAC)▼ · 1 stocks
CME Group Inc
CME
▼ NegativeCompetitionrelevance

CFTC approval of Kalshi perpetual futures opens a competitive threat to CME's monopoly futures franchises, prompting Cooper Investors to cut its stake.

Off-coverage companies 2

KalshiPrivate▲ Positive
Regulationrelevance

CFTC granted Kalshi approval to launch perpetual futures, a regulatory green light expanding its product offering.

Cooper InvestorsPrivate± Mixed
relevance

Cooper Investors is the fund that cut its CME stake; no direct business impact on the firm itself.

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