The Commodity Futures Trading Commission has authorized perpetual futures contracts on individual stocks for trading on US exchanges. CFTC Chairman Michael Selig announced the decision on November 3, following coordination with the Securities and Exchange Commission under Chairman Paul Atkins. The products will trade on markets registered with both agencies under rules from the Commodity Futures Modernization Act of 2000.
The authorization extends a framework first used for bitcoin perpetual contracts in May. Regulators aim to bring trading onshore from unregulated offshore platforms. Perpetual futures differ from standard futures by having no expiration date and using funding rates to track underlying prices. CME Group has challenged the regulatory approach in court.
Read the full story on BSC News: CFTC Allows Equity Perpetual Futures on Individual Stocks to Trade on US Exchanges
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