CFTC Opens U.S. Markets to Individual Stock Perpetuals

• Qualifying CFTC-registered exchanges can now offer equity perpetual futures, provided they also meet SEC registration requirements for security futures.
• Chairman Michael Selig says the move expands access to risk-management and price-discovery tools while reducing reliance on offshore platforms.
• The development follows years of regulatory uncertainty, with CFTC-SEC cooperation providing a clearer framework for equity perpetual trading.

U.S. traders can now access perpetual futures tied to individual stocks through qualifying regulated exchanges. CFTC Chairman Michael S. Selig announced the development, ending years of regulatory uncertainty surrounding equity perpetuals. The contracts can trade on designated markets also registered with the SEC as notice-registered national securities exchanges for security futures products.

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CFTC Opens Trading Under Joint Regulatory Oversight

Selig said equity perpetual futures, also known as Equity Perps, can begin trading for the first time on qualifying CFTC-registered exchanges. These venues must also hold the required SEC registration to trade security futures products.

Journalist Eleanor Terrett reported that the CFTC approved the first perpetual futures contracts linked to individual stocks. The approval allows qualifying U.S.-regulated exchanges to offer the products under CFTC and SEC oversight.

Previously, regulatory uncertainty kept equity perpetual futures outside established U.S. market structures. However, the new arrangement provides a route for these contracts to enter regulated markets.

Selig Cites Risk Management and Market Access

Selig said perpetual futures have become widely sought tools for risk management and price discovery. He added that U.S. traders should access these products within the CFTC's regulatory framework.

According to the chairman, bringing Equity Perps into regulated markets could reduce the need for American investors to use offshore, often unregulated platforms. His statement emphasized access under applicable law and existing regulatory protections.

The announcement also addresses the long-running jurisdictional uncertainty surrounding security futures and equity perpetual contracts. Selig said the products had remained in a regulatory “no man's land” because of limited coordination between agencies.

CFTC and SEC Address Years of Regulatory Uncertainty

Selig linked the development to the Commodity Futures Modernization Act of 2000 and the CFTC-SEC Memorandum of Understanding. Both provide the foundation for cooperation between the agencies on these products.

He said the CFTC and SEC had moved beyond an era of regulatory disputes. The agencies now seek to provide clearer rules and a defined path for innovative financial products.

SEC Chairman Paul S. Atkins previously described the regulatory situation as a “no man's land,” Terrett reported. The latest announcement brings individual-stock perpetual futures into qualifying U.S. exchanges under joint oversight.

Selig said the approach aims to keep these products within established regulatory protections rather than leaving U.S. participants dependent on offshore venues.