Key Takeaways
- • The CFTC authorized trading in perpetual futures on individual stocks (Equity Perps) on US-registered venues, according to a statement by CFTC Chair Michael Selig on November 3, 2026.
- • Equity Perps are approved under CFTC Rule 40.3 and classified as security futures under the Commodity Futures Modernization Act of 2000, making them subject to both CFTC and SEC rules.
- • The decision follows the CFTC's earlier 2026 approval of a perpetual bitcoin futures contract and a March 2026 CFTC-SEC memorandum of understanding on coordinated oversight.
- • A lawsuit backed by Cboe and Citadel Securities through the Capital Markets Alliance seeks to block the approval, citing risks of a parallel synthetic equities market.
Summary
The US Commodity Futures Trading Commission has authorized trading in perpetual futures on individual stocks, known as Equity Perps, on regulated US venues. Chair Michael Selig announced the decision on November 3, 2026. The products will be able to trade for the first time on exchanges registered with both the CFTC and the US Securities and Exchange Commission.
Perpetual futures are derivatives that let traders take positions on the price movements of an underlying asset without buying it directly. Unlike traditional futures, they have no fixed expiration date. The instruments have become widespread in cryptocurrency markets, including on decentralized venues. Selig said Equity Perps are deemed approved under CFTC Rule 40.3 and are classified as security futures under the Commodity Futures Modernization Act of 2000. As a result, they are subject to both US commodities and securities laws and the rules of both commissions.
Selig said the regulated segment will allow US investors to access these products domestically rather than through offshore platforms, which he described as often unregulated. He characterized perpetual futures as in-demand tools for risk management and price discovery. The decision continues an initiative to bring perpetual derivatives trading under US jurisdiction, following the CFTC's earlier 2026 approval of the first fully fledged perpetual bitcoin futures contract on an agency-overseen exchange.
Selig pointed to the memorandum of understanding signed between the CFTC and the SEC in March 2026, which provides for coordination between the agencies and resolution of inconsistencies in oversight of financial products. He said insufficient regulator coordination over many years had held back innovative instruments. SEC Chair Paul Atkins previously described this situation as a regulatory "no man's land."
The decision has drawn opposition from traditional market participants. According to Reuters, the Capital Markets Alliance, backed by Cboe and Citadel Securities, filed a lawsuit seeking to block the approval. The plaintiffs argue that the CFTC's actions could create a parallel market for synthetic equities and undermine the established division of authority between regulators.
Perpetual futures are derivatives that let traders take positions on the price movements of an underlying asset without buying it directly. Unlike traditional futures, they have no fixed expiration date. The instruments have become widespread in cryptocurrency markets, including on decentralized venues. Selig said Equity Perps are deemed approved under CFTC Rule 40.3 and are classified as security futures under the Commodity Futures Modernization Act of 2000. As a result, they are subject to both US commodities and securities laws and the rules of both commissions.
Selig said the regulated segment will allow US investors to access these products domestically rather than through offshore platforms, which he described as often unregulated. He characterized perpetual futures as in-demand tools for risk management and price discovery. The decision continues an initiative to bring perpetual derivatives trading under US jurisdiction, following the CFTC's earlier 2026 approval of the first fully fledged perpetual bitcoin futures contract on an agency-overseen exchange.
Selig pointed to the memorandum of understanding signed between the CFTC and the SEC in March 2026, which provides for coordination between the agencies and resolution of inconsistencies in oversight of financial products. He said insufficient regulator coordination over many years had held back innovative instruments. SEC Chair Paul Atkins previously described this situation as a regulatory "no man's land."
The decision has drawn opposition from traditional market participants. According to Reuters, the Capital Markets Alliance, backed by Cboe and Citadel Securities, filed a lawsuit seeking to block the approval. The plaintiffs argue that the CFTC's actions could create a parallel market for synthetic equities and undermine the established division of authority between regulators.
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