Commodity Futures Trading Commission chairman Michael Selig said on November 3 that individual-equity perpetual futures can begin trading on CFTC-registered exchanges that also meet SEC registration requirements. The CFTC says the products have been deemed approved as security futures under an existing rule and must meet both commodities and federal securities-law requirements. The announcement does not confirm that brokers already offer the contracts.
These derivatives provide exposure to individual shares without a conventional expiration; they are not the shares themselves. Contract terms, including margin, clearing, reference prices and adjustments for corporate events, will determine how they work in practice.
