CFTC Clears Stock Perpetuals as Leverage Concerns Grow

• The CFTC cleared stock perpetual futures for trading on regulated US exchanges on November 3, 2026.
• The new contracts have no fixed expiration date and allow traders to maintain positions while meeting margin requirements.
• The CFTC and SEC will jointly oversee the contracts under existing security futures regulations.
• Kalshi’s filing covers 58 contracts linked to major US stocks and exchange-traded funds.
• Kalshi requires traders to maintain collateral equal to at least 15.5% of their contract’s market value.
• Perpetual futures provide stock price exposure without granting shareholders’ voting rights or direct dividends.

The Commodity Futures Trading Commission (CFTC) cleared perpetual futures tied to individual US stocks for trading on regulated exchanges Tuesday. The move brings contracts without expiry dates into domestic markets.

Unlike regular futures, these contracts remain open while traders maintain collateral. They track share prices without transferring ownership of the underlying stocks.

CFTC Clears Perpetual Futures Under Shared Oversight

Chairman Michael Selig said the contracts were deemed approved under Regulation 40.3 following a 45-day review. Their classification as security futures places them under both CFTC and Securities and Exchange Commission oversight.

Eligible exchanges need CFTC registration and SEC authorization for security futures. Selig said the move could reduce reliance on “offshore, and often unregulated, venues.” The agency approved Kalshi’s bitcoin perpetual contract in May.

Stock Contracts Offer Price Exposure Without Ownership

Kalshi’s September filing covers 58 contracts linked to stocks and exchange-traded funds, including Apple, Tesla, Nvidia, Microsoft, Alibaba and funds tracking major US indexes. Trading runs Sunday evening through Friday afternoon, Eastern time.

Holders receive no voting rights or direct dividends. Other products, including Kraken’s tokenized stock offerings, also differ from direct stock ownership.

Periodic payments keep contract prices near underlying stock prices. When futures trade above share prices, buyers pay sellers. Coinbase Derivatives proposed hourly funding payments capped at 0.10%.

Positions can stay open indefinitely if traders maintain the required margin. Extended trading hours also allow prices to change when ordinary stock exchanges remain closed.

Separately, Chainlink’s weekend stock pricing service uses perpetual futures quotes to value tokenized collateral when stock markets close. Aave Horizon is adopting the service.

Leverage Rules Raise Concerns About Losses

Kalshi requires traders to maintain collateral worth at least 15.5% of a contract’s market value. Traders can therefore control positions worth several times their deposit.

Better Markets warned November 2 that leverage increases losses during sharp declines. Securities policy director Benjamin Schiffrin said automatic liquidations can close positions before customers add funds.

The group said a 20% stock decline could erase a position using fivefold leverage. It also questioned whether perpetual contracts meet the definition of futures.

More Exchanges Plan Around-the-Clock Trading

Coinbase Derivatives and Bitnomial also submitted stock perpetual plans in September. The filings add additional US competitors seeking traders previously served by offshore platforms.

Meanwhile, ICE’s proposed Hyperliquid perpetual futures venture with TradeXYZ would cover stocks and other assets. The New York Stock Exchange parent announced the partnership on October 29, pending regulatory approval.