Add as a preferred source on GoogleCFTC Opens U.S. Path for Single-Stock Perpetual Futures
Eligible venues must register with both the CFTC and SEC. The statement did not set a first listing date.
CFTC Chairman Michael S. Selig opened a U.S. regulatory route for single-stock perpetual futures on eligible exchanges, extending a crypto-style derivatives product to traditional securities and bringing the contracts under joint federal oversight.
The statement does not mean a contract has launched. A venue must be registered with the CFTC as a designated contract market and also hold SEC notice registration as a national securities exchange.
Under CFTC Regulation 40.3, the contracts are treated as security futures products under the Commodity Futures Modernization Act of 2000. They must comply with the Commodity Exchange Act and federal securities laws, under a joint CFTC-SEC framework.
The move follows the earlier approval this year of a Bitcoin perpetual futures listing, shifting the underlying from digital commodities to stock securities.
The Securities Industry and Financial Markets Association (SIFMA) asked the SEC on Nov. 2 for more review before such contracts list. It cited potential effects on underlying stocks, cross-market monitoring and trading during periods of thin liquidity.
The first listing, margin terms, funding rates and cross-market surveillance details depend on later product and rule implementation.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.