Authors: Kari S. Larsen, Chelsea Pizzola, and Austin Stanton
Today, CFTC Chairman Michael S. Selig announced that perpetual futures on individual equity securities (“Equity Perps”) can begin trading on designated contract markets (“DCMs”) that are also notice-registered with the Securities and Exchange Commission (“SEC”) as national securities exchanges. Michael S. Selig, CFTC, Statement on Equity Perpetual Futures & n.1 (Nov. 3, 2026).
For DCMs seeking to list these products, the route combines SEC notice registration on Form 1-N with compliance with separate security futures product (“SFP”) listing requirements. See 15 U.S.C. § 78f(g)–(h); 17 C.F.R. § 240.6a-4(a).
How We Got Here
Single-stock futures were already permitted in the United States under the Commodity Futures Modernization Act of 2000 (“CFMA”), which established joint CFTC–SEC oversight. Equity Perps raised a further question: whether a stock-linked contract with no fixed expiration could qualify as an SFP rather than an SEC-regulated security-based swap. See SEC, Exchange Act Release No. 44,692, 66 Fed. Reg. 43,721 (Aug. 20, 2001); 15 U.S.C. § 78c(a)(68)(A). In June, SEC and CFTC jointly sought comment from the public on ways to more clearly delineate or streamline regulatory oversight and to update definitions to account for innovations in this space. See Joint Request for Comment on Further Definition of “Swap” and “Security-Based Swap” and on Alternative Compliance, 91 Fed. Reg. 37,873 (June 24, 2026).
The CFTC’s May 29, 2026 approval of KalshiEX LLC’s bitcoin perpetual futures contract did not resolve the treatment of Equity Perps: the order expressly limited its analysis to digital commodities. The accompanying nonbinding policy statement instead contemplated separate review of Equity Perps by both the CFTC and SEC.
Chairman Selig’s statement today addresses that equity-specific question, reporting that the Equity Perps at issue were deemed approved as SFPs under CFTC Regulation 40.3 and remain subject to joint CFTC–SEC oversight. Selig, Statement on Equity Perpetual Futures.
Form 1-N Registers the Exchange, Not the Product
Eligible DCMs can use Form 1-N to notice-register with the SEC as national securities exchanges for SFP trading, with registration generally effective upon a complete filing. This existing route, not created by the November announcement, allows a DCM to add the SEC registration needed to offer SFPs. 17 C.F.R. § 240.6a-4(a)(1); 15 U.S.C. § 78f(g)(1)–(2).
Notice registration is only the exchange-registration step. Before listing an Equity Perp, a DCM must also satisfy applicable product and rule-filing requirements, listing standards, clearing arrangements, and surveillance obligations. 15 U.S.C. § 78f(h)(2)–(3).
Conclusion
Please let us know if you would like assistance with Form 1-N and applicable product and rule filings or engagement with CFTC and SEC staff.
Equity Perps product submissions and related documents are available on the CFTC’s security futures product filings page.
