CFTC Clears Single-Stock Perpetual Futures in U.S.

Ten years after the launch of the first crypto perpetual futures, U.S. regulators have cleared similar derivatives for individual stocks, according to YahooStocks0. The Commodity Futures Trading Commission (CFTC) approved the trading of equity perps under a joint framework with the Securities and Exchange Commission in early November.

Unlike traditional options, which carry fixed expiration dates and strike prices, single-stock perps operate without expiration dates. Traders deposit cash as collateral and choose a leverage ratio to amplify exposure to underlying equities such as Meta, Palantir, and McDonald's. To keep the contract price aligned with the underlying stock, buyers and sellers periodically pay funding fees depending on whether the contract trades at a premium or a discount.

Exchange Adoption and Market Infrastructure

Kalshi became the first CFTC-regulated exchange to introduce single-stock perps in early November, offering positions in over 50 individual stocks and indexes like the S&P 500. Meanwhile, Intercontinental Exchange invested in TradeXYZ to bring regulated perps to domestic traders. Charles Schwab, which already offers single-stock futures, is also positioned to make the transition due to its existing registration status.

Other major brokerages are taking different approaches. Robinhood launched crypto perps in September but has not announced plans for single-stock perps, while larger firms like E*Trade from Morgan Stanley continue to prioritize traditional options.

Legal Hurdles from Legacy Institutions

Despite the regulatory clearance, the rollout faces domestic opposition. Wall Street trade groups, including the Capital Markets Alliance Association whose members include Cboe and Citadel Securities, filed lawsuits to block equity perps. The legacy institutions argue that the CFTC overstepped its authority by fast-tracking approval and that the derivatives require stricter margin, capital, and reporting standards to protect retail investors.

Key facts

• The CFTC greenlit single-stock perpetual futures for trading in the U.S. in early November under a joint framework with the SEC.
• Kalshi became the first CFTC-regulated exchange to launch single-stock perps for over 50 individual stocks and the S&P 500.
• Equity perps feature no expiration dates and utilize funding fees rather than strike prices to track underlying equities.
• Wall Street trade groups, including members Cboe and Citadel Securities, filed lawsuits to block the rollout of equity perps.