US Regulators Approve Perpetual Stock Futures Trading on Domestic Exchanges

Key Points

Table of Contents

On November 3, 2026, the CFTC authorized stock perpetual futures contracts for trading on regulated US platforms.
These financial instruments feature no expiration date and enable traders to hold positions indefinitely when margin conditions are satisfied.
Joint supervision by the CFTC and SEC applies under the framework governing security futures.
Kalshi submitted applications for 58 contracts tracking prominent US equities and exchange-traded funds.
Collateral requirements at Kalshi mandate traders hold at least 15.5% of their position’s notional value.
These contracts deliver stock price exposure while excluding voting privileges and dividend distributions associated with share ownership.

The Commodity Futures Trading Commission authorized perpetual futures contracts based on individual US equities for domestic exchange trading Tuesday. This regulatory decision introduces instruments with indefinite durations to American markets.

These contracts differ from traditional futures by remaining active as long as traders satisfy collateral obligations. They follow equity prices without conveying actual share ownership.

Regulatory Authorization Comes Through Shared Supervision Framework

Chairman Michael Selig confirmed the contracts received approval via Regulation 40.3 after completing a 45-day examination period. Because they qualify as security futures, both the CFTC and Securities and Exchange Commission exercise regulatory authority.

Qualified exchanges must hold CFTC registration alongside SEC security futures authorization. Selig noted this development may decrease dependence on “offshore, and often unregulated, venues.” The commission previously authorized Kalshi’s bitcoin perpetual product in May.

Equity Contracts Deliver Price Participation Without Shareholder Status

Kalshi’s September application encompasses 58 contracts referencing stocks and exchange-traded funds, including Apple, Tesla, Nvidia, Microsoft, Alibaba and funds mirroring primary US indexes. Market hours span Sunday evening until Friday afternoon, Eastern time.

Contract holders receive zero voting authority and no direct dividend payments. Alternative instruments such as Kraken’s tokenized stock offerings similarly diverge from conventional share ownership.

Routine payment mechanisms align contract valuations with underlying equity prices. When futures prices exceed stock values, long position holders compensate short sellers. Coinbase Derivatives outlined hourly funding transfers with a 0.10% ceiling.

Traders can sustain positions without time limits by fulfilling margin obligations. Extended operating hours additionally permit price movements during traditional stock exchange closures.

In related developments, Chainlink’s weekend stock pricing service leverages perpetual futures quotations to establish tokenized collateral values when equity markets cease operations. Aave Horizon plans to implement the service.

Margin Requirements Spark Warnings About Amplified Drawdowns

Kalshi mandates traders preserve collateral equaling a minimum 15.5% of contract notional value. This structure allows traders to command positions substantially exceeding their capital deposits.

Better Markets issued a November 2 caution that leverage magnifies losses when markets decline rapidly. Securities policy director Benjamin Schiffrin highlighted that automatic liquidation mechanisms can terminate positions before account holders deposit additional capital.

The organization noted a 20% equity drop could eliminate an entire position employing fivefold leverage. The group additionally questioned whether perpetual instruments satisfy the technical definition of futures contracts.

Additional Platforms Submit Applications for Continuous Trading Hours

Coinbase Derivatives and Bitnomial filed stock perpetual applications in September. These submissions expand the roster of US competitors pursuing traders historically served through foreign platforms.

Concurrently, ICE’s proposed Hyperliquid perpetual futures venture with TradeXYZ would encompass equities alongside additional asset classes. The New York Stock Exchange parent disclosed the collaboration on October 29, subject to regulatory clearance.