The CFTC has cleared the first perpetual futures contracts tied to individual stocks for trading on eligible US exchanges, bringing the crypto market’s no-expiration contract structure into r
The CFTC has cleared the first perpetual futures contracts tied to individual stocks for trading on eligible US exchanges, bringing the crypto market’s no-expiration contract structure into regulated American equity derivatives markets.
SummaryThe Commodity Futures Trading Commission announced the clearance on Nov. 3, with Chairman Michael Selig confirming that stock-linked perpetual contracts can begin trading on qualifying domestic venues.
“Today, perpetual futures contracts on individual equity securities (the ‘Equity Perps’) can begin trading for the first time on CFTC-registered exchanges,” Selig said.
In his accompanying statement, Selig said the contracts were deemed approved under Commission Regulation 40.3 as security futures products under the Commodity Futures Modernization Act of 2000.
The classification subjects them to the Commodity Exchange Act, federal securities laws, and the regulatory frameworks of both the CFTC and SEC. Eligible venues are designated contract markets that have registered with the SEC as national securities exchanges specifically for security futures trading.
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Selig described domestic access as a way to let American investors use perpetual contracts within a regulated framework, citing their use in risk management and price discovery.
The approval process allows compliant products to become deemed approved when the applicable review period expires without a notice of non-approval. Its initial review period is 45 days, with provisions for extensions.
Ahead of the announcement, Kalshi, Coinbase Derivatives and Bitnomial filed rules describing their proposed stock futures markets.
Kalshi’s filing sets a minimum customer margin of 15.50% of a position’s current market value. At that floor, a $10,000 position requires $1,550 in margin, equivalent to approximately 6.45 times exposure.
Its proposed contracts have no preset expiration date. Long and short holders exchange funding payments based on the relationship between the perpetual contract and underlying stock prices.
As crypto.news previously reported, Kalshi’s stock proposal requires underlying securities to meet thresholds including a $100 billion market capitalization, more than 20 million shares of estimated deliverable supply and $450 million in average daily trading value over six months.
The proposed trading schedule runs from Sunday at 6 p.m. Eastern Time through Friday at 5 p.m., with a daily maintenance break from 5 p.m. to 6 p.m. Trading must stop during regulatory halts affecting the underlying security.
Coinbase’s rule filing covers cash-settled futures on individual stocks and ETF shares. Its proposed margin amendments generally require at least 15% of current market value.
The company’s September application outlined plans for more than 50 single-stock perpetuals. Contract-specific materials would identify trading hours, pricing methods, and funding arrangements.
Bitnomial’s separate submission proposes a 15.25% customer-margin floor for unhedged positions, while allowing clearing firms and intermediaries to require more collateral.
Selig linked the equity announcement to the CFTC’s May 29 approval of Kalshi’s Bitcoin perpetual futures contract, which references Bitcoin’s spot price.
In a same-day policy statement, the agency said perpetual contracts referencing assets outside that order should undergo case-by-case review because their characteristics vary with the underlying market.
Coinbase had pursued its US registration after introducing stock perpetual futures for eligible customers outside the country.
Separately, NYSE parent Intercontinental Exchange announced an Oct. 29 agreement with Trade[XYZ] to establish a dedicated US market and clearing structure for Hyperliquid-based perpetuals, subject to regulatory approvals. Its planned markets include equities, crypto, commodities and foreign exchange.
Cboe challenged the exchanges’ approach in an Oct. 14 letter, arguing that stock perpetuals should not be treated as security futures. It urged the SEC to abrogate the proposed rule changes and require standard securities-exchange review.
Better Markets raised similar objections in a Nov. 2 statement. Benjamin Schiffrin, its director of securities policy, warned that leverage could rapidly exhaust an investor’s deposit and emphasized that the contracts do not confer stock ownership rights.
Bitnomial’s filing states that the SEC may, after consulting the CFTC, abrogate its rule change within 60 days of CFTC approval and require refiling under the standard review process.
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