Key Takeaways
- • CFTC Chairman Michael Selig announced on Nov. 3, 2026 that perpetual futures tied to individual U.S. equities may begin trading on CFTC-registered exchanges, the first such opportunity under U.S. regulation.
- • The contracts were deemed approved under CFTC Regulation 40.3 as security futures products, with legal foundation in the Commodity Futures Modernization Act of 2000, subjecting them to the Commodity Exchange Act, federal securities laws, and oversight from both the CFTC and SEC.
- • The decision follows the CFTC's earlier approval of a bitcoin perpetual futures contract and is framed by Selig as an effort to onshore perpetual derivatives so American investors avoid offshore, often unregulated venues.
- • The CFTC and SEC signed a memorandum of understanding earlier in 2026 to coordinate supervisory responsibilities, which Selig described as ending a period of jurisdictional friction.
Summary
The Commodity Futures Trading Commission has cleared perpetual futures tied to individual stocks to trade on regulated U.S. exchanges for the first time, according to an announcement by CFTC Chairman Michael Selig on Nov. 3. The move extends a product long associated with offshore cryptocurrency platforms into the domestic securities market, following the agency's earlier approval of a bitcoin perpetual futures contract.
Unlike conventional futures, perpetual futures have no expiration date, allowing traders to hold leveraged positions indefinitely provided they satisfy margin requirements. A funding mechanism typically transfers payments between long and short positions to keep perpetual prices aligned with underlying markets, though funding intervals and contract specifications vary by exchange. The structure was popularized by BitMEX, which launched its XBTUSD perpetual swap in May 2016 and closed its doors in September of this year, according to the source. The concept itself predates crypto, with economist Robert Shiller having explored perpetual futures decades earlier.
The contracts were deemed approved under CFTC Regulation 40.3 as security futures products, drawing their legal basis from the Commodity Futures Modernization Act of 2000. As a result, equity perpetuals are subject to the Commodity Exchange Act, federal securities laws, and oversight from both the CFTC and the SEC. Selig pointed to years of jurisdictional friction between the agencies, recalling SEC Chairman Paul Atkins' description of a regulatory "no man's land." The two regulators signed a memorandum of understanding earlier in 2026 to coordinate their supervisory responsibilities.
Selig framed the decision as part of a broader effort to bring derivatives trading under American supervision. He said he had directed the CFTC "to use the tools at its disposal to onshore perpetual derivative products so that they can flourish in the U.S., subject to appropriate safeguards." He argued that domestic oversight gives American investors and traders access to these products "within the protections of the CFTC's proven regulatory framework, rather than being forced to turn to offshore, and often unregulated, venues."
The source notes that the regulatory path is now open, but commercial demand remains untested. Equity perpetuals will compete with established stock options, conventional futures, and other leveraged instruments, and legal authorization does not guarantee trading volume.
Unlike conventional futures, perpetual futures have no expiration date, allowing traders to hold leveraged positions indefinitely provided they satisfy margin requirements. A funding mechanism typically transfers payments between long and short positions to keep perpetual prices aligned with underlying markets, though funding intervals and contract specifications vary by exchange. The structure was popularized by BitMEX, which launched its XBTUSD perpetual swap in May 2016 and closed its doors in September of this year, according to the source. The concept itself predates crypto, with economist Robert Shiller having explored perpetual futures decades earlier.
The contracts were deemed approved under CFTC Regulation 40.3 as security futures products, drawing their legal basis from the Commodity Futures Modernization Act of 2000. As a result, equity perpetuals are subject to the Commodity Exchange Act, federal securities laws, and oversight from both the CFTC and the SEC. Selig pointed to years of jurisdictional friction between the agencies, recalling SEC Chairman Paul Atkins' description of a regulatory "no man's land." The two regulators signed a memorandum of understanding earlier in 2026 to coordinate their supervisory responsibilities.
Selig framed the decision as part of a broader effort to bring derivatives trading under American supervision. He said he had directed the CFTC "to use the tools at its disposal to onshore perpetual derivative products so that they can flourish in the U.S., subject to appropriate safeguards." He argued that domestic oversight gives American investors and traders access to these products "within the protections of the CFTC's proven regulatory framework, rather than being forced to turn to offshore, and often unregulated, venues."
The source notes that the regulatory path is now open, but commercial demand remains untested. Equity perpetuals will compete with established stock options, conventional futures, and other leveraged instruments, and legal authorization does not guarantee trading volume.
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