CFTC opens regulated U.S. route for single-stock perpetual futures

The Commodity Futures Trading Commission said U.S. commodity markets may begin offering perpetual futures tied to individual companies’ shares, creating a regulated route for a type of derivative that has until now not been available domestically for single stocks.

The products may trade only on properly registered markets that also file notice with the Securities and Exchange Commission to trade security futures. CFTC Chair Michael Selig said the arrangement recognised the agencies’ complementary roles and would give U.S. participants access to perpetual futures’ risk-management and price-discovery uses within applicable law.

Perpetual futures, commonly known as perps, have no expiry date, allowing a position to remain open without being rolled into a new contract. They allow traders to take positions on price movements without owning the underlying asset, but can involve high leverage and therefore amplify both gains and losses.

The ruling makes single-stock perps available in the United States for the first time, according to The Block. It differs from a single-agency product clearance because the venues must meet both CFTC registration requirements and the SEC notice requirement for security futures.

Kalshi and Polymarket, whose core businesses have been event contracts tied to sports, elections and other outcomes, are considering perpetual futures as an avenue for growth beyond those markets. Kalshi had already opened a perpetual future on a 500-company U.S. equity index in October, as this publication reported.

The move comes amid a wider regulatory effort to define the boundary between securities- and commodities-based derivatives. Under the 2010 Dodd-Frank law, the CFTC typically regulates swaps while the SEC oversees securities-based swaps. The agencies issued a joint request for comment on harmonising definitions for novel products, and announced a memorandum of understanding in March on jurisdictional boundaries, oversight coordination and data sharing.

The CFTC has approved several perpetual-futures products over the past year, including products listed by KalshiEX and Coinbase that were tied to digital assets. That expansion has also drawn a legal challenge: the Chicago Mercantile Exchange sued the agency in June over its decision to allow those listings, alleging that the CFTC exceeded its authority. The agency rejected that charge.

Selig said bringing perps onto regulated U.S. markets would give investors and traders the protections of the CFTC framework rather than steering activity to offshore venues.