regulation
CFTC Issues Policy on Perpetual Contracts Listing
The CFTC has issued a policy statement clarifying its views on the listing of perpetual contracts, emphasizing a case-by-case review process. This helps clarify regulatory expectations for these types of derivatives.
AS1 NewsSource: cftc.gov
The Commodity Futures Trading Commission (CFTC) announced a new policy statement regarding the listing of perpetual contracts, a type of derivative that does not have an expiration date. The statement was released alongside an order that permits a specific perpetual contract linked to Bitcoin's spot price to be listed by a designated contract market (DCM). The policy highlights that due to the unique features of perpetual contracts, which can vary based on the underlying asset, the CFTC believes that each case should be reviewed individually under the existing regulation (Regulation 40.3). This approach aims to ensure proper oversight and compliance for these financial products. The policy will be published in the Federal Register, making it official and publicly accessible.
The policy provides clearer regulatory guidance for the listing of perpetual contracts, which could influence how exchanges and traders approach these derivatives.