SEC Official Expects Four US Exchanges to Launch Crypto-Style Perpetual Equity Futures in Q4
Regulated derivative trading on US equities is nearing a major expansion as at least four exchanges prepare to introduce perpetual futures on securities during the fourth quarter. Five exchanges regulated by the Commodity Futures Trading Commission—including Coinbase, Kalshi, Bitnomial, NADEX, and ICE Futures—submitted Form 1-N registration notices in September to offer security futures products.
Perpetual futures originated in cryptocurrency markets and differ from conventional single-stock futures because they do not have expiration dates. Under the notice-registration framework, eligible exchanges can list security futures products upon filing without undergoing a traditional SEC pre-approval process. An SEC official noted that the regulator's focus is maintaining standards and encouraging market competition rather than evaluating the commercial success of new products.
While the September filings mark an important administrative step, specific launch schedules, listing details, and trading parameters have not yet been released. Market participants will be watching for individual exchange announcements regarding initial eligible stocks, leverage caps, funding mechanics, and settlement arrangements ahead of expected Q4 rollouts.
Key points
- At least four exchanges are expected to launch perpetual futures contracts on US securities in the fourth quarter.
- Five CFTC-regulated venues submitted Form 1-N registration notices with the SEC in September to trade security futures.
- Perpetual futures do not have expiration dates, unlike traditional single-stock futures launched by CME Group in July.
- Form 1-N filings become effective upon submission for security futures trading without requiring standard SEC pre-approval.
- Specific launch dates, contract leverage limits, covered stocks, and settlement terms remain unannounced.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
What are perpetual futures on US stocks?
Perpetual futures are derivative contracts originally created in cryptocurrency markets that allow investors to gain exposure to individual stocks without an expiration date.
Which exchanges plan to offer perpetual equity futures?
Five CFTC-regulated exchanges submitted Form 1-N filings in September: Coinbase, Kalshi, Bitnomial, NADEX, and ICE Futures, with at least four expected to launch Q4 trading.
How are perpetual stock futures approved by the SEC?
Eligible exchanges submit Form 1-N registration notices that take effect upon filing for security futures products, rather than going through a conventional SEC pre-approval process.