🇺🇸 Wall Street Meets Crypto: US Clears Path for Single-Stock Perpetual Futures
The US Commodity Futures Trading Commission (CFTC) has opened the door for perpetual futures tied to individual stocks to trade on regulated American exchanges for the first time. Announced on November 3 by CFTC Chairman Michael S. Selig, the move extends crypto-style perpetual contracts into traditional equity markets, allowing traders to maintain positions without conventional expiration dates.
Unlike traditional stock ownership, perpetual futures provide synthetic exposure to share prices and can support leveraged long and short positions. Platforms including Kalshi are moving into this market, with contracts linked to companies such as Apple, Costco, Qualcomm and Amgen. The products must operate through appropriately registered exchanges under the applicable CFTC and SEC frameworks.
The development could reshape competition between traditional financial institutions and crypto-native trading platforms. It also creates new opportunities for derivatives markets, although leverage increases the risk of substantial losses. However, the expansion is already facing legal opposition: a group backed by Cboe and Citadel Securities has sued the CFTC, challenging its regulatory authority over the products. The battle over equity perpetuals is now becoming a major test of America's evolving financial market structure.#USClearsSingleStockPerpetualFutures
The US Commodity Futures Trading Commission (CFTC) has opened the door for perpetual futures tied to individual stocks to trade on regulated American exchanges for the first time. Announced on November 3 by CFTC Chairman Michael S. Selig, the move extends crypto-style perpetual contracts into traditional equity markets, allowing traders to maintain positions without conventional expiration dates.
Unlike traditional stock ownership, perpetual futures provide synthetic exposure to share prices and can support leveraged long and short positions. Platforms including Kalshi are moving into this market, with contracts linked to companies such as Apple, Costco, Qualcomm and Amgen. The products must operate through appropriately registered exchanges under the applicable CFTC and SEC frameworks.
The development could reshape competition between traditional financial institutions and crypto-native trading platforms. It also creates new opportunities for derivatives markets, although leverage increases the risk of substantial losses. However, the expansion is already facing legal opposition: a group backed by Cboe and Citadel Securities has sued the CFTC, challenging its regulatory authority over the products. The battle over equity perpetuals is now becoming a major test of America's evolving financial market structure.#USClearsSingleStockPerpetualFutures
