The Commodity Futures Trading Commission (CFTC) has authorized the trading of perpetual futures contracts on individual US stocks on regulated domestic exchanges. These instruments, which do not have an expiration date, were previously accessible only through offshore platforms. The approval process followed the 45-day review period under Regulation 40.3.
Exchange Kalshi has filed to list 58 contracts covering 55 stocks, including Apple, Tesla, Nvidia, and Microsoft, as well as two funds tracking the S&P 500 and Nasdaq-100. Trading hours are scheduled from Sunday evening through Friday afternoon. Coinbase Derivatives also submitted a design where buyers pay sellers a funding fee of up to 0.10% per hour when the contract price exceeds the underlying stock.
These contracts are classified as security futures, meaning they fall under the joint oversight of the CFTC and the SEC. Only exchanges registered with both regulators are permitted to list them. Better Markets notes that holders gain price exposure without ownership of shares, dividends, or voting rights. Kalshi requires a margin of 15.5% of the position value.
Market participants and regulators are debating the risks associated with leverage. While offshore perpetuals often offer up to 20x leverage, US versions are expected to be capped at 6x. CME Group has initiated legal action against the CFTC regarding the approval of crypto perpetuals, while the Intercontinental Exchange is exploring 24/7 futures options.
