CFTC approves individual stock perpetual futures trading in US for the first time

What happened

The Commodity Futures Trading Commission approved U.S. exchanges to offer perpetual futures contracts tied to individual stocks for the first time, with CFTC Chair Michael Selig announcing the move on Tuesday.

Confirmed

Global impact / market context

Perpetual futures let traders bet on stock prices without owning shares and without an expiry date. This gives investors another way to manage risk or speculate, but it can add borrowed money and fast price swings to stock trading.

Analyst inference

Perpetual futures grew popular on offshore platforms that trade 24/7, especially when traditional markets were closed during Middle East supply shocks. Bringing them to U.S. stock trading could shift some activity from offshore venues to regulated exchanges.

Analyst inference

What to watch

1. Track which U.S. exchanges receive approval to list stock perpetual futures and when trading actually begins. Confirmed
2. Watch whether regulators attach conditions on borrowed money limits, investor safeguards, or rules separating these contracts from regular stock trading. Proposed
3. Observe whether trading volume moves from offshore platforms to U.S. venues, which could affect fees and cash available at existing exchanges. Analyst inference

Evidence

• theblock.co