Perpetual futures on individual stocks could begin trading on markets registered with the CFTC, chairman Michael Selig announced on November 3. Inspired by crypto trading, the products will have no expiration date and will fall under the joint supervision of the CFTC and the SEC. Funding payments between buyers and sellers will help keep the contract price close to that of the underlying stock, while product design must account for dividends, stock splits and other corporate actions affecting the underlying security. The approval will not let every platform launch contracts immediately and will not ensure continuous trading 24 hours a day, seven days a week. The SIFMA has called for further review of liquidity, manipulation and price-reference reliability risks when reference markets are closed.
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