CFTC clears US equity perpetual futures

The Commodity Futures Trading Commission has authorized perpetual futures contracts on individual equity securities to begin trading in the United States. The instruments, referred to as Equity Perps, can begin trading as of November 3, 2026, following their deemed approval as security futures products under CFTC Regulation 40.3.

CFTC Chairman Michael S. Selig said that qualifying US exchanges can now offer perpetual futures tied to individual stocks within a joint regulatory framework with the Securities and Exchange Commission. The decision creates a defined route for US venues to list these contracts, although no specific exchanges or launch dates have been disclosed.

Equity perpetual futures are classified as security futures products under the Commodity Futures Modernization Act of 2000. This designation subjects them to the applicable requirements of the Commodity Exchange Act, US federal securities laws, and the coordinated regulatory regimes of both the CFTC and the SEC.

To list these contracts, an exchange must be registered with the CFTC as a designated contract market and with the SEC as a notice‑registered national securities exchange for trading security futures products. Registration with the CFTC alone does not satisfy the conditions for offering Equity Perps.

Chairman Selig described the move as building on the foundation of the CFMA and a memorandum of understanding between the CFTC and SEC aimed at harmonizing oversight. He said the two agencies have moved away from a prior regulatory “no man’s land” for products such as security futures and equity perpetual futures by providing clearer rules and a path to market.

Perpetual futures are derivative contracts without a fixed expiry date, allowing positions to be maintained for extended periods, subject to margin and contract rules. The newly approved Equity Perps are linked to individual stocks, extending the perpetual futures format beyond digital commodities and broad market indexes.

Selig noted that the decision follows earlier CFTC action approving a bitcoin perpetual futures contract on a regulated US exchange. The November expansion brings the perpetual contract structure into traditional securities, enabling contracts tied to individual equity securities under the same overarching framework.

Selig said the expansion is intended to allow US market participants to use perpetual futures for risk management and price discovery while remaining within regulated markets. He argued that onshoring such products under the CFTC’s established framework gives American investors and traders access without needing to rely on offshore or unregulated venues.

The Hyperliquid Policy Center publicly welcomed the CFTC’s decision, stating that treating equity perpetuals as security futures can enable both CFTC‑ and SEC‑regulated exchanges to compete in offering these contracts. The group said this competition could improve outcomes for investors by broadening the range of venues able to list equity perpetual futures.

The CFTC has not indicated which exchanges will first introduce equity perpetual futures, which stocks will be covered, or when specific contracts will become available. Details such as weekend trading arrangements, funding mechanisms, and liquidation procedures were not specified in the announcement.

The newly established regulatory path means further development now depends on qualifying exchanges completing their preparations and selecting products to list. The approval sets the structural conditions for US equity perpetual futures trading, while the timing and scope of actual market offerings remain to be determined.