CFTC grants no-action relief on perpetual-style futures

• Relief covers DCMs converting existing perpetual-style broad-based security index futures.
• Amendments may remove expiration dates if customer protection and procedural conditions are met.
• No-action positions in the letter expire on October 20, 2026.

Action

The Commodity Futures Trading Commission’s Division of Market Oversight said it issued no-action relief to designated contract markets. The relief covers DCMs seeking to convert existing perpetual style broad-based security index futures into true broad-based security index perpetual futures.

CFTC grants no-action relief on perpetual-style futures

The letter says DCMs may remove expiration dates from their existing broad-based security index futures perpetual style futures contracts. The amendments can take effect once the letter’s customer protection and procedural conditions are satisfied.

• Solicit feedback from market participants with open positions.
• Provide advance notice and an opportunity to exit positions.
• Offer appropriate risk disclosures.
• Ensure no other material contract terms are modified.
• File the amendments under CFTC Regulations 40.5 or 40.6 and certify compliance with all conditions.

Effective

The no-action positions in the letter expire on October 20, 2026.

Respondents

The relief is for designated contract markets seeking the conversion.