U.S. Rules for Stock Perpetuals Come Into Focus
The CFTC has outlined a path for perpetual futures tied to individual stocks to trade on qualifying U.S. venues. The announcement raises a bigger question: how should these contracts be classified, and which regulatory framework should govern them?
- The CFTC’s pathway applies only to venues that meet specified requirements.
- A joint CFTC-SEC request for comment shows the agencies are still examining regulatory boundaries.
- Perpetual contracts can offer leveraged exposure, but their terms and risks vary by product.
In Release 9319-26, dated November 3, 2026, the Commodity Futures Trading Commission said perpetual futures on individual equity securities could begin trading on designated contract markets that are also notice-registered with the Securities and Exchange Commission as national securities exchanges for trading security futures products.
That is a defined route, not blanket authorization for every venue or product using the word “perpetual.” The CFTC described the products under the security-futures framework. The announcement states the agency’s position, but it does not settle every legal question about how a particular contract should be classified.
Why classification matters
Security futures and security-based swaps fall under different regulatory frameworks. A contract’s classification can affect the obligations that apply to its venue and intermediaries, along with the rules for customer access. The details depend on the product and applicable law. A regulatory label alone does not tell traders whether a contract is safe or suitable for them.
The boundary between these frameworks is part of a wider regulatory discussion. A joint CFTC-SEC request for comment, published in the Federal Register on June 24, 2026, as 2026-12743 (91 FR 37873), sought input on how to clarify the treatment of products that may involve both agencies. Comments were due August 24.
The request was not a final rule and did not decide how stock perpetuals should be classified. It does show that the agencies were examining how existing definitions apply to newer financial products. The legal treatment of any specific contract depends on its structure and the relevant statutory definitions, not simply on whether it has an expiration date.
CFTC Chairman Michael S. Selig described the new pathway as a way to give U.S. participants access to equity perpetuals in regulated domestic markets and reduce reliance on offshore venues. That is the CFTC’s policy rationale. It does not prove that every trader will gain access or that domestic products will suit every customer.
How perpetuals work, and where leverage bites
A perpetual is a derivative with no normal scheduled expiration. Many perpetual designs use recurring funding payments between long and short holders to help keep the contract price near a reference price. The calculation and payment direction depend on the contract’s rules.
“Perpetual” does not mean round-the-clock trading. A venue can set its own trading hours, while the underlying stock market follows its schedule. When that market is closed, the contract may have no current cash-market price to track. That can make pricing and hedging harder and widen the gap between the derivative’s price and its reference.
A stock perpetual does not make its holder a shareholder. The trader holds a derivative position, not the referenced shares, and gets no shareholder voting rights. How dividends and other corporate events are handled depends on the contract terms.
Margin is collateral posted to support a position. Notional exposure is the larger market exposure controlled by that collateral. Consider a purely hypothetical position where $1, 000 in collateral supports $6, 451.61 in exposure, about 6.45 times the collateral. A 5% adverse move would cause a loss of about $322.58, or roughly 32.3% of the starting collateral, before fees, funding payments or changes in position size.
This illustrates leverage. It is not a verified margin term for any particular product. Actual margin, funding, fees and liquidation rules vary by venue, contract and broker. If a position no longer meets the applicable requirements, it may be forcibly closed. A later recovery in the stock will not restore a position that has already been liquidated.
Key questions and answers
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What did the CFTC announce?
Release 9319-26 describes a pathway for perpetual futures on individual securities to trade on venues that meet specified CFTC and SEC requirements. It does not authorize every venue or every product marketed as a perpetual. The agency’s position is also discussed in coverage of how the CFTC deems U.S. equity perpetuals approved.
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Has the legal classification been settled?
No. The CFTC has stated its approach, but the wider boundary between security futures and security-based swaps remains a regulatory and legal question. The legal arguments in a related amicus filing show that these questions can remain contested. The joint request for comment did not decide how these contracts should be classified.
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Does “perpetual” mean 24-hour trading?
No. It means there is no ordinary scheduled expiration. A venue can still limit trading hours, and the referenced stock market may be closed.
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Do stock perpetuals give traders ownership of shares?
No. They provide derivative exposure to a reference price, not share ownership or voting rights.
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Does the CFTC pathway guarantee access through a broker?
No. A venue’s eligibility does not mean every customer can access its products. Brokers can set their own access conditions, and product terms differ.
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Why does leverage matter?
A position’s exposure can be much larger than its collateral. A modest move against a leveraged position can consume a substantial share of that collateral and may trigger liquidation.
Perpetuals let traders keep positions open without the routine rollover required by dated futures. That does not guarantee continuous trading, dependable liquidity or low risk. The CFTC has outlined one regulatory route. Contract terms and the rules ultimately applied to each product will determine what that route means for traders.
