CFTC approves perpetual futures on U.S. stocks
6.7 Markets The CFTC approved perpetual futures on U.S. stocks for regulated exchanges, bringing crypto-style derivatives to equities. These cash-settled contracts have no expiry and require further review before launch.
The Commodity Futures Trading Commission (CFTC) has approved the listing of perpetual futures contracts on individual U.S. stocks. These contracts, known as equity perps and popular in crypto markets, can now be traded on exchanges registered with both the CFTC and the Securities and Exchange Commission (SEC). This marks the first time such derivatives are introduced to the U.S. equity market. The contracts are cash-settled, have no fixed expiry, and do not grant stock ownership. They are subject to oversight by both the CFTC and SEC, ensuring regulatory compliance. The approval is limited to products that have completed the regulatory process and does not serve as a blanket authorization for all platforms. No specific exchanges, contracts, or launch dates have been announced. The contracts involve leverage and liquidation risk, prompting industry groups to call for further review before trading begins. A mechanism is in place to keep contract prices aligned with the underlying stock, but perpetual status does not guarantee 24/7 trading.
