Why does this matter now? For the first time, U.S. traders could soon access perpetual futures on individual stocks, directly from regulated American exchanges.
The Commodity Futures Trading Commission (CFTC) has approved so-called "Equity Perps," allowing perpetual futures contracts on single U.S. stocks. Previously, these products were only available on offshore, often unregulated, platforms. Unlike traditional futures, perpetuals have no expiry date. They rely on ongoing funding payments to align prices with the underlying stock.
This move follows the CFTC's approval of Kalshi's $BTC perpetual (BTCPERP) on May 29, 2024. The back-to-back approvals show regulators are warming up to crypto-style derivatives in traditional finance. It signals a shift in U.S. market structure, but the CFTC's June 2024 statement did not mention which exchanges will list these contracts or when trading will start.
What changes for traders? If exchanges with both CFTC and SEC registration decide to list these Equity Perps, U.S. traders will finally have a regulated alternative to offshore venues. CFTC Chair Michael Selig highlighted that this move brings oversight to a market segment that was previously out of reach for most Americans. However, as of June 2024, no individual stocks or launch dates have been announced.
Meanwhile, the traditional stock market is evolving too. Four major transfer agents, Broadridge, Computershare, Equiniti, and Superstate, are joining the New York Stock Exchange's blockchain marketplace for tokenized equities. This points to growing institutional interest in merging blockchain technology with the core functions of equity markets.
Key takeaways:
CFTC approved perpetual futures on individual U.S. stocks in June 2024.
Only dual registered exchanges (CFTC and SEC) can list these products.
No exchanges, contracts, or official launch dates have been named yet.
Do you think U.S. equity perpetuals will attract significant trading volume once they go live?