US Regulators Clear Never-Expiring Stock Futures for Onshore Trading

Futures contracts that follow individual US stocks and never expire may now be listed on regulated American exchanges. On Tuesday the Commodity Futures Trading Commission (CFTC) approved these equity perpetual futures — a product US traders previously had to hunt down offshore.

Leverage is the sticking point. Kalshi, one of the exchanges that filed to list the contracts, lets a trader hold a stock position by putting up 15.5% of its value, and a Washington reform group cautions that such positions get liquidated automatically during steep sell-offs.

How Do Perpetual Stock Futures Operate?

A standard futures contract ends on a set date. Perpetual futures keep rolling without ever expiring, which means a trader can stay in a position for as long as the margin holds out.

A recurring funding payment pulls the contract back toward the share price. Under the design filed by Coinbase Derivatives, buyers pay sellers when the contract trades above the stock, at as much as 0.10% an hour.

The September 18 filing from Kalshi lists 58 contracts. They span 55 stocks — Apple, Tesla, Nvidia and Microsoft among them — plus Alibaba's US shares and two funds that track the S&P 500 and the Nasdaq-100.

Trading hours run from Sunday evening through Friday afternoon, US Eastern time. According to Better Markets, holders receive price exposure alone: no shares, no dividends and no voting rights.

What Made the CFTC Allow Them?

The contracts were “deemed approved” under Regulation 40.3, which clears a new product once the CFTC's 45-day review window lapses. A statement from Chairman Michael Selig classes them as security futures, so the SEC shares in the oversight.

Only exchanges that are also registered with the SEC to trade such products may list them. The step follows the CFTC's May approval of a bitcoin perpetual contract on Kalshi.

“…rather than being forced to turn to offshore, and often unregulated, venues,” the CFTC said in a statement.

What Can Traders Stand to Lose?

Benjamin Schiffrin, director of securities policy at Better Markets, wrote on November 2 that single-stock perpetuals offshore carry leverage of up to 20x. Single-stock ETFs approved by the SEC generally top out at 2x.

US versions would reportedly permit up to 6x. On the group's math, a 20% decline extinguishes a 5x position.

“…a gambling tool masquerading as a legitimate financial instrument”

Established players are resisting as well. CME Group is already suing the CFTC over its clearance of crypto perpetuals.

At the same time, the contest for these traders is broadening. Intercontinental Exchange, which owns the New York Stock Exchange, intends to offer 24/7 US futures on Hyperliquid. Whether offshore demand comes home will become clear from early volumes on the new stock contracts.