CFTC clears way for equity perpetual futures to trade in US
US investors can now access perpetual futures tied to individual stocks through regulated exchanges, following a regulatory announcement by CFTC Chairman Michael Selig.
The development, announced on Tuesday, permits trading of Equity Perps on designated contract markets that are also registered with the SEC as national securities exchanges under a notice-registration framework for security futures products.
Selig emphasized that this move brings equity perpetual futures into the US regulatory system, providing traders with instruments for risk management and price discovery without relying on potentially unregulated offshore platforms.
Regulatory Framework
The decision draws on the Commodity Futures Modernization Act of 2000 and the CFTC-SEC Memorandum of Understanding. Selig noted that previous differences between the agencies' regulatory approaches had created uncertainty around these products.
The CFTC's regulatory framework would provide protections for domestic market participants as these products enter regulated US markets.
Improved Coordination
The CFTC and SEC have improved their coordination to provide regulatory clarity for innovative products while reducing disputes over their respective jurisdictions, clearing the way for these new trading opportunities.
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