CFTC Clears Single-Stock Perpetual Futures for U.S. Exchanges

U.S. exchanges with the required registrations can offer single-stock perpetual futures following a Nov. 3 CFTC announcement, extending a familiar crypto-trading product into equities. Eligible traders gain another way to trade stock-price movements, with leverage increasing both potential gains and losses.

The contracts were deemed approved under CFTC Regulation 40.3 as security futures products. They remain subject to federal securities and commodities laws, rather than receiving an exemption from either regulatory framework.

Stock Exposure Without Scheduled Expiry

The contracts let traders take positions on rising or falling stock prices without owning shares. For crypto traders familiar with Bitcoin perpetuals, this extends the same broad trading structure to individual companies.

Unlike conventional futures, perpetuals have no scheduled expiration date. Traders therefore avoid periodically replacing expiring contracts, although funding payments can affect the cost of holding a position.

Kalshi’s Nov. 3 product update lists contracts linked to Amgen, Costco, McDonald’s, and Qualcomm. Kalshi warns that customers may lose all committed funds and may need to post additional margin, making the amount initially deposited only part of the potential financial commitment.

Exchange Registration Determines Access

The announcement covers designated contract markets that also hold SEC notice registration to trade security futures. It does not authorize every crypto platform to offer stock perpetuals to U.S. customers.

Kalshi requires customers to apply separately to trade stock perpetuals. Existing access to its other markets therefore does not automatically provide access to these contracts.

Its product update also warns that these markets do not trade around the clock. Customers should check trading hours before planning an exit, particularly if they are accustomed to continuously available crypto markets.

Industry Group Seeks to Overturn Approvals

The Capital Markets Alliance challenged the approvals in the Southern District of New York. It argues that the contracts are security-based swaps under SEC jurisdiction, rather than jointly regulated security futures.

The alliance is asking the court to overturn the approvals and prevent the CFTC from giving them effect while the case proceeds. The requested relief, if granted, would disrupt the regulatory foundation for offering the contracts, as it stems from the alliance’s request rather than a formal court ruling.