Key Notes
- The CFTC says perpetual futures on individual stocks can begin trading on eligible US exchanges.
- The contracts were deemed approved as security futures products subject to joint CFTC and SEC oversight.
- The announcement does not establish when each exchange will launch or which customers will qualify.
Perpetual futures tied to individual stocks can begin trading for the first time on eligible U.S. derivatives exchanges, Commodity Futures Trading Commission Chairman Michael Selig said on November 3. The move brings a contract design widely used in crypto markets to individual listed equities under joint U.S. oversight.
The contracts were deemed approved as security futures products. Selig said the exchanges must be CFTC-designated contract markets and also registered by notice with the Securities and Exchange Commission to trade security futures. His statement did not name the first venue to go live or publish a launch roster.
How the Contracts Were Approved
Selig cited Regulation 40.3, which allows a properly submitted product to be deemed approved when its applicable review period ends without a notice of non-approval. The initial review normally runs for 45 days and can be extended. That process can clear a product without a separate approval order.
The Commodity Futures Modernization Act of 2000 established joint CFTC and SEC oversight for security futures. Selig said the new contracts remain subject to federal commodity and securities law. The change does not extend the regular trading session for the shares themselves.
The CFTC’s May decision on Kalshi’s Bitcoin perpetual established an earlier precedent for a contract without a fixed expiry. Tuesday’s announcement extends that structure to single securities. It also follows Selig’s broader push for markets that can operate beyond conventional hours, which we previously reported.
Which Exchanges Are Preparing to List Stock Perps
Kalshi filed listing standards for perpetual security futures in September, and its product submissions include an Apple contract referencing Apple Inc. (Nasdaq: AAPL). A separate Coinbase filing from Coinbase Derivatives, a subsidiary of Coinbase Global (Nasdaq: COIN), also describes single-stock perpetual futures. Bitnomial and North American Derivatives Exchange submitted related rule proposals, according to filings identified in a securities industry letter.
The public docket entries for the Apple and Coinbase submissions still displayed an approval-pending label when checked, even as Selig confirmed that equity perpetuals had been deemed approved. The chair’s statement establishes the regulatory development but does not resolve the timing or status of every individual listing.
Kalshi opened a waitlist on October 29. It already offers a U.S. large-cap index perpetual, launched in October, which tracks a basket rather than an individual company. Stock perps would widen its product range after a $1 billion funding round valued the company at $40 billion.
What Traders Get From a Contract With No Expiry
A perpetual future lets traders take a long or short position on a share price without an expiration date or a scheduled rollover. Kalshi’s filing describes cash settlement and daily funding transfers between long and short holders. Those transfers are designed to pull the contract price toward the stock’s reference price when the two diverge.
Buying the contract does not make the trader a shareholder or confer voting rights. Exchanges can specify how their contracts account for dividends or other corporate actions, so the economics can differ from holding the underlying shares. Coinbase’s existing offshore stock perps are offered by its Bermuda entity and are separate from the U.S. filing.
Margin lets traders control a position larger than their cash deposit, magnifying losses as well as gains. A position can be closed if collateral falls below the required level. Funding can also add to the cost of holding a position, even when the underlying stock moves little.
Trading Hours and Liquidity Will Matter at Launch
Extended futures hours can give traders a way to respond to an earnings release while the main stock session is closed. Prices may also diverge more when trading in the underlying shares is thin. The Securities Industry and Financial Markets Association raised concerns on November 2 about low-volume periods and regulators’ ability to detect manipulation across the two markets.
The next facts to watch are the first live contracts, participating brokers and the hours, margin and funding terms they publish. Regulatory clearance makes domestic listings possible, but actual access will depend on the venue and account eligibility.
