CFTC Grants No-Action Relief for DCMs Converting Perpetual-Style Index Futures

The CFTC has issued a no-action letter permitting designated contract markets to convert existing perpetual-style broad-based security index futures into true perpetual futures.

The Commodity Futures Trading Commission (CFTC) has issued a no-action letter aimed at designated contract markets (DCMs). The regulatory relief provides guidance and no-action position for DCMs regarding the process of converting existing perpetual-style broad-based security index futures contracts into true perpetual futures. The action addresses contract structuring and market standards for perpetual derivative products tied to broad-based security indexes offered by registered exchanges under CFTC oversight.