The Commodity Futures Trading Commission’s Division of Market Oversight issued no-action relief allowing designated contract markets to convert existing perpetual-style broad-based security index futures into true perpetual futures by removing their expiration dates. The measure extends to security index products the conversion approach previously provided for certain digital commodity futures. Before implementing a conversion, a designated contract market must seek feedback from market participants with open positions, provide advance notice and an opportunity to exit, supply appropriate risk disclosures and make no other material changes to the contract. It must also file the amendments under CFTC Regulations 40.5 or 40.6 and certify that all conditions have been met. The no-action positions expire Oct. 20, 2026.
Commodity Futures Trading Commission grants no-action relief for conversions to true broad-based security index perpetual futures
The Commodity Futures Trading Commission granted no-action relief for designated contract markets to convert existing perpetual-style broad-based security index futures into true perpetual futures by removing expiration dates. Conversions require participant feedback, advance notice and exit opportunities, risk disclosures, regulatory filings and certification of compliance, with the relief expiring Oct. 20, 2026.