Trading in single-stock 'perps' can begin, US regulator says

What happened

The head of the US Commodity Futures Trading Commission said perpetual futures on individual company stocks can now trade on properly registered commodity markets. Such platforms must also register with the SEC to trade security futures.

Confirmed

Global impact / market context

Perps are derivative contracts with no expiry date, letting traders hold positions indefinitely, and they can involve high leverage, which means borrowed money that magnifies gains and losses. Regulated access could pull activity away from offshore venues and widen choices for retail investors.

Analyst inference

Event-contract platforms like Kalshi and Polymarket are seeking perpetual futures as a new growth path, moving into territory held by traditional Wall Street firms. The shift pushes crypto-style trading further into regulated US markets and could increase competition for brokers and exchanges.

Analyst inference

What to watch

1. Watch whether CFTC-registered markets file the required notice with the SEC to trade security futures, since that step is needed before single-stock perps can be offered. Confirmed
2. Watch whether Kalshi and Polymarket launch single-stock perpetual futures, which would show these platforms competing directly with established brokers and exchanges for retail trading volume. Analyst inference
3. Watch for any CFTC rules on leverage limits for perpetual futures, since high leverage, which means borrowed money that magnifies gains and losses, can hurt individual traders. Confirmed

Evidence

• Original source link unavailable