The CFTC has issued a no-action letter allowing designated contract markets to convert their perpetual-style broad-based security index futures into true perpetual futures, subject to certain conditions.
Why it matters. Designated contract markets will be able to implement true perpetual futures contracts, which could improve market efficiency and liquidity.
WASHINGTON — The Commodity Futures Trading Commission’s Division of Market Oversight today announced it has issued no-action relief to designated contract markets seeking to convert their existing perpetual style broad-based security index futures contracts into true broad-based security index perpetual futures.
According to the letter, DCMs may remove expiration dates from their existing broad-based security index futures perpetual style futures contracts and implement these amendments to convert them into true broad-based security index perpetual futures contracts effective upon the satisfaction of certain customer protection and procedural conditions in the letter.
The no action positions in this letter expire on October 20, 2026.
