The Commodity Futures Trading Commission said it had cleared perpetual futures tied to individual stocks to begin trading on CFTC-registered U.S. exchanges for the first time. The announcement does not say that trading has begun. The contracts have no expiration date, but traders must meet margin and funding requirements to keep leveraged positions open.
The contracts were deemed approved as security futures products under the Commodity Futures Modernization Act of 2000 and fall under joint CFTC and Securities and Exchange Commission oversight. CFTC Chairman Michael Selig described the move as part of his effort to bring perpetual products onto regulated U.S. exchanges.
