CFTC Clears U.S. Exchanges to Offer Perpetual Futures on Individual Stocks
The CFTC has cleared CFTC-registered U.S. exchanges to offer perpetual futures tied to individual stocks, a first for the U.S. market. The contracts use a format popular in crypto trading, but the announcement does not name which exchanges will list them or when trading will begin.
Key takeaways
- The CFTC cleared CFTC-registered U.S. exchanges to offer perpetual futures tied to individual stocks.
- CFTC Chairman Michael Selig described the contracts as “equity perpetual futures.”
- The announcement did not name participating exchanges, stocks, contract terms, or a launch date.
- Perpetual futures have no fixed expiration date and may use leverage, which increases potential losses as well as gains.
The CFTC has cleared U.S. exchanges to offer perpetual futures tied to individual stocks, extending a trading product associated with crypto into regulated equity markets. CFTC Chairman Michael Selig said “equity perpetual futures” can trade on CFTC-registered exchanges.
Unlike a conventional futures contract, a perpetual futures contract has no fixed expiration date. Its price is generally kept in line with the underlying asset through mechanisms such as periodic payments between traders. The reports do not identify the first stocks or exchanges involved, or give a launch date.
What changes for stock traders?
The approval opens the door for eligible U.S. exchanges to offer stock-linked perpetuals. These contracts let traders take positions on a stock’s price without buying the shares themselves. They can also involve leverage, which magnifies both gains and losses; the sources do not specify the terms or leverage limits for any products that may launch.
That makes the development more than a new way to trade stocks: it brings a crypto-native contract format into a market with different trading hours and oversight. Crypto platforms have already been using perpetuals to offer exposure to assets such as stocks and commodities, including outside traditional market hours (how exchanges have applied perpetuals to stocks and commodities). The CFTC’s action concerns offerings on registered U.S. exchanges.
What should traders watch next?
The announcement clears a regulatory path, but it does not establish that trading is live. Traders should look for exchange announcements naming the listed stocks, contract terms, fees, collateral requirements, and safeguards against sharp price moves. Until those details appear, the approval alone does not tell investors what products they will be able to use or how risky they will be.
Frequently asked questions
What are stock perpetual futures?
They are contracts that track the price of an individual stock and have no fixed expiration date. Traders take positions on price movements without necessarily buying the shares, and contracts may use leverage.
Did the CFTC approve stock perpetual futures in the U.S.?
The CFTC cleared CFTC-registered U.S. exchanges to offer perpetual futures tied to individual stocks. The announcement did not identify specific exchanges or products.
When will U.S. stock perpetual futures start trading?
No launch date was included in the reports. Exchanges have not been identified, so traders will need to wait for product announcements and contract details.