CFTC: Equity Perpetual Futures Can Begin Trading for the First Time on Regulated Exchanges
Michael S. Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), released a statement in Washington on November 3 announcing that perpetual futures contracts on individual equity securities (the "Equity Perps") can begin trading for the first time on CFTC-registered exchanges. Those exchanges are designated contract markets that are dually registered with the Securities and Exchange Commission (SEC) as notice-registered national securities exchanges to trade security futures products.
Selig said that in his inaugural remarks he had directed the CFTC to use the tools at its disposal to onshore perpetual derivative products so they can flourish in the U.S., subject to appropriate safeguards. Earlier this year, the CFTC approved the listing of the first true bitcoin perpetual futures contract on a CFTC-regulated exchange; today's announcement extends the availability of perpetual futures beyond digital commodities and into traditional securities. Bringing these innovative products into regulated markets, he said, ensures American investors and traders can access them within the protections of the CFTC's proven regulatory framework, rather than being forced to turn to offshore, and often unregulated, venues.
The statement said the Equity Perps were deemed approved by the Commission under Commission Regulation 40.3 as security futures products under the Commodity Futures Modernization Act of 2000 (CFMA), and are subject to the applicable requirements of the Commodity Exchange Act, the U.S. federal securities laws, and the regulatory frameworks of both the CFTC and the SEC.
Selig noted that the CFMA, enacted more than two decades ago, established a framework for the joint regulation of security futures products, and that earlier this year the CFTC and SEC entered into a historic memorandum of understanding to guide coordination between the two agencies. He thanked CFTC staff for their work and collaboration with the SEC, and said he looks forward to building on the milestone as the CFTC works to ensure the new frontier of finance is built in the United States.
(Source: U.S. Commodity Futures Trading Commission)
Source: U.S. Commodity Futures Trading Commission
Published by GSM · USA (original Chinese edition)
Photo: 图：美国商品期货交易委员会（CFTC）总部入口（华盛顿 Three Lafayette Centre）。Dclemens1971 摄，CC BY 4.0，经 Wikimedia Commons。 / Photo: Entrance of the CFTC headquarters at Three Lafayette Centre, Washington, D.C. Photo by Dclemens1971, CC BY 4.0, via Wikimedia Commons.
