Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig announced in a statement that perpetual futures on individual equity securities can begin trading for the first time on qualifying U.S. exchanges. Eligible venues are designated contract markets also registered with the Securities and Exchange Commission (SEC) as notice-registered national securities exchanges to trade security futures products. The contracts were deemed approved under CFTC Regulation 40.3 as security futures products under the Commodity Futures Modernization Act of 2000. They are subject to the Commodity Exchange Act, federal securities laws and both agencies’ regulatory frameworks. The development extends U.S. perpetual futures trading beyond digital commodities, following the May 29 approval of a bitcoin perpetual futures contract. The listing policy issued alongside that earlier approval identified review on a case by case basis under Regulation 40.3 as the appropriate route for perpetual contracts referencing other asset classes.
CFTC announces equity perpetual futures can begin trading on dually registered exchanges
Commodity Futures Trading Commission Chairman Michael S. Selig announced that perpetual futures on individual equities can begin trading on designated contract markets also registered with the Securities and Exchange Commission to trade security futures products. The contracts were deemed approved under Regulation 40.3 and are subject to both agencies’ regulatory frameworks. The expansion follows the earlier approval of a bitcoin perpetual futures contract.