CFTC issues no-action letter for DCMs to convert futures contracts

by@CFTC

Summary

On October 5, 2026, the Commodity Futures Trading Commission (CFTC) announced a no-action relief for designated contract markets (DCMs), permitting them to convert their existing perpetual-style broad-based security index futures into true perpetual futures. This action allows DCMs to remove expiration dates from these contracts, provided they fulfill certain customer protection and procedural conditions, such as soliciting feedback from market participants and ensuring that no other material contract terms are altered. This measure follows earlier no-action relief issued by the CFTC in 2026, which similarly allowed DCMs to convert digital commodity futures contracts into true perpetual futures, demonstrating the agency's ongoing efforts to expand regulatory pathways for various markets, including leveraged retail trading of crypto and stock indices.

Analysis

Commodity Futures Trading Commission: The Commodity Futures Trading Commission is the independent U.S. federal agency responsible for regulating the derivatives markets, including futures, options, and swaps traded on designated contract markets. It oversees compliance, market integrity, and customer protections in these venues. In this news, the agency’s Division of Market Oversight issued no-action relief enabling DCMs to convert existing perpetual-style broad-based security index futures into true perpetual contracts without expiration dates, provided specified customer protection conditions are met. `json { "Market Development": "The CFTC is reviewing and approving perpetual futures on stock indices and expanding regulatory pathways for leveraged retail trading of crypto and other assets." } `

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