By Douglas Gillison <\/p>\n
WASHINGTON, Nov 3 (Reuters) – So-called perpetual futures contracts on individual companies’ stocks can now begin trading \u200con properly registered commodity markets, the head of the \u200cUS Commodity Futures Trading Commission announced Tuesday, allowing new prediction market platforms to \u200btake another step onto traditional Wall Street firms’ territory. <\/p>\n
\u2022 The decision comes as platforms like Kalshi and Polymarket, which primarily allow trading in event contracts — or options contracts that pay out depending \u200con the outcome of \u2060sporting events, elections and other things — look to perpetual futures as a separate avenue for growth. <\/p>\n
\u2022 Colloquially \u2060known as perps, perpetual futures are derivative contracts with no expiry date, allowing traders to hold positions indefinitely without rolling them over. They \u200bcan also \u200binvolve high leverage, increasing both \u200bpotential gains and losses. <\/p>\n
\u2022 \u200cMichael Selig, the CFTC’s chair, said in a statement that bringing perps onto regulated markets “ensures that American investors and traders can access these products within the protections of the CFTC’s proven regulatory framework,” rather than encouraging the emergence of offshore markets. <\/p>\n
\u2022 To offer \u200ctrade in single-stock perps, CFTC-registered markets \u200bwill also have to be registered \u200bby filing notice with \u200bthe Securities and Exchange Commission to trade in \u200csecurity futures, the CFTC statement said. <\/p>\n
\u2022 \u200bThe Chicago \u200bMercantile Exchange in June sued the CFTC, challenging its recent decision to let Kalshi and cryptocurrency exchange Coinbase list perpetual \u200bfutures in digital assets, \u200cclaiming that the CFTC had exceeded its legal authority, \u200ba charge the CFTC rejected. <\/p>\n
(Reporting by Douglas Gillison in \u200bWashington; Editing by Chizu Nomiyama ) <\/p>\n","protected":false},"excerpt":{"rendered":"By Douglas Gillison WASHINGTON, Nov 3 (Reuters) – So-called perpetual futures contracts on individual companies’ stocks can now…\n","protected":false},"author":2,"featured_media":956921,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[15261,45,161,49,48,46,133,1828,1829,74172,1830,1831,100,39783,8123,131,2519,968,1705,2511,1832,1833,176,74173,3322,74174],"class_list":["post-956920","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-401k","tag-business","tag-business-news","tag-ca","tag-canada","tag-economy","tag-finance","tag-financial-information","tag-investing","tag-investment-tools","tag-investor","tag-market-news","tag-markets","tag-mortgage","tag-mutual-funds","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-track-portfolio"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/956920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=956920"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/956920\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/956921"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=956920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=956920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=956920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}