The CFTC has approved the first equity perpetual futures contracts for trading on US exchanges, marking a new step for derivatives markets in the country.
Why it matters
Perpetual futures are designed without a fixed expiry date, unlike standard futures contracts. Bringing equity-linked versions to US exchanges introduces a new format for traders seeking derivatives exposure to stocks within the US market framework.
Market impact
The approval adds an equity product to the US exchange landscape and could broaden the range of listed derivatives available to market participants. The announcement does not specify which stocks or exchanges are involved, or when trading will begin.
Frequently asked questions
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What did the CFTC approve?
The CFTC approved the first equity perpetual futures contracts for trading on US exchanges.
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How do perpetual futures differ from standard futures?
Perpetual futures are designed without a fixed expiry date, unlike standard futures contracts.
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What underlying exposure do the new contracts provide?
They are equity-linked contracts, bringing the perpetual futures format to stock exposure.
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Does the announcement name the stocks or exchanges involved?
No. The announcement does not specify which stocks or exchanges are covered.
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Has a trading start date been announced?
No trading start date is specified in the announcement.
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