The US derivatives market has reached a new milestone after the Commodity Futures Trading Commission (CFTC) opened the door to equity perpetual futures. The development allows CFTC-registered exchanges to begin offering contracts linked to individual stocks. CFTC Chairman Michael Selig announced the move on November 3, 2026. Consequently, US traders can access another derivative product through regulated domestic platforms.
CFTC Expands Perpetual Futures Beyond Crypto
The decision extends perpetual futures beyond digital assets into traditional financial markets. Earlier this year, the CFTC approved the first Bitcoin perpetual futures contract on a regulated US exchange. However, the latest development introduces individual equity securities into this expanding market.
Significantly, perpetual futures allow traders to speculate on price movements without holding underlying assets. These contracts also provide tools for managing market exposure and discovering prices. Hence, the expansion could attract more institutional and retail participation.
CFTC and SEC Strengthen Regulatory Cooperation
The Commission approved the contracts under the Commodity Futures Modernization Act of 2000. Additionally, the products must comply with federal commodities and securities laws. Both the CFTC and Securities and Exchange Commission (SEC) will oversee the framework.
Moreover, the agencies recently signed a memorandum of understanding to improve regulatory coordination. The agreement addresses longstanding jurisdictional uncertainty surrounding innovative financial products. Consequently, regulators aim to encourage domestic innovation while protecting investors.
Related: Europol Seizes Over 100 Servers in International Investment Scam Crackdown
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