According to The Block, the U.S. Commodity Futures Trading Commission has approved for the first time the ability of exchanges in the United States to offer perpetual futures contracts linked directly to individual stocks.
The approval allows exchanges that are registered with the CFTC to list perpetual futures contracts based on specific stocks rather than index-based or other multi-asset structures. No details were provided regarding eligibility criteria, contract specifications, regulatory oversight mechanisms, or implementation timelines for exchanges.
Perpetual futures are derivative contracts that do not have a fixed expiration date and typically settle in cash or via physical delivery, depending on design. The CFTC’s action marks the first explicit authorization under U.S. regulation for such products tied to single equities as opposed to broader indices or baskets.
The move reflects ongoing regulatory review of innovative equity derivatives but does not include provisions on investor protection standards, exchange supervision enhancements, or market risk requirements specific to these contracts. The CFTC did not issue accompanying guidance at this stage.
