CFTC Authorizes First Trading of Equity Perpetual Futures on Dually Registered Exchanges

CFTC Chairman Michael S. Selig announced that perpetual futures contracts on individual equity securities can begin trading for the first time. Designated contract markets dually registered with the Securities and Exchange Commission as notice-registered national securities exchanges are now cleared to offer these Equity Perps.

The move brings these products into the CFTC's regulated framework. Selig stated that the contracts will be available consistent with applicable law.

Bringing Innovation Under CFTC Oversight

Selig described the expansion as a significant step toward allowing U.S. market participants to access the advantages of perpetual futures. These have become widely sought tools for risk-management and price-discovery.

He emphasized the value of providing these products within the protections of the CFTC’s proven regulatory framework. This approach avoids forcing American investors and traders toward offshore and often unregulated venues.

The development builds directly on the Commodity Futures Modernization Act of 2000 and the CFTC-SEC Memorandum of Understanding. According to the CFTC press release, prior regulatory uncertainty had left such innovative products in a jurisdictional gap.

Resolving the Regulatory No Man’s Land

Selig referenced SEC Chairman Paul S. Atkins’ description of the prior environment as a regulatory ‘no man’s land’ caused by lack of harmonization between the agencies. The CFTC and SEC have now turned the page on that era.

Both agencies are committed to delivering regulatory clarity for innovative products. The goal is a clear path to market rather than additional casualties of jurisdictional disputes.

This announcement ends years of ambiguity for equity perpetual futures and security futures alike. It establishes a framework grounded in the existing inter-agency coordination mechanisms.