The U.S. derivatives market is taking another step toward a contract structure crypto traders know well: the true perpetual future.
The Commodity Futures Trading Commission’s Division of Market Oversight said on October 5 that designated contract markets can convert certain existing perpetual-style broad-based security index futures into contracts with no expiration date.
The relief is temporary and conditional, but it is still a notable shift in how U.S.-regulated venues can structure perpetual exposure.
The no-action position comes with several safeguards.
A designated contract market must solicit feedback from participants holding open positions, provide advance notice, give customers an opportunity to exit and deliver appropriate risk disclosures.
The exchange also cannot use the conversion as an excuse to alter other material contract terms.
Any amendment still needs to be filed under the CFTC’s existing rules, and the venue must certify that it has satisfied the conditions in the letter.
That is a long way from saying every U.S. futures exchange can now list any perpetual product it wants.
Perpetual futures became a defining product of offshore crypto markets because they provide leveraged exposure without a fixed expiration date.
The contracts covered by this CFTC action are different: they reference broad-based security indexes.
Even so, the regulatory direction is interesting.
Earlier this year, CFTC staff also provided a route for converting certain digital-commodity perpetual-style futures into true perpetuals. Extending the same concept into index products suggests the agency is becoming more comfortable with the structure itself.
The relief lasts only until October 20, which makes it more of a controlled window than a permanent policy settlement.
Still, regulated U.S. exchanges now have a path to test true perpetual index futures under explicit customer-protection conditions.
That brings a contract design closely associated with crypto one step further into mainstream derivatives infrastructure.
This article was written by the News Desk and edited by Samuel Rae.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]
