CFTC Allows designated contract markets to convert certain perpetual-style contracts into perpetual contracts with no expiration date
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AT A GLANCE
CFTC Allows designated contract markets, subject to conditions, to convert certain existing contracts into perpetual contracts with no expiration date.
Article
【CFTC【U.S. designated contract markets may convert certain contracts into perpetual contracts with no expiration date】
The U.S. Commodity Futures Trading Commission (CFTC) issued a “no-action” exemption allowing designated contract markets (DCM) to convert certain existing contracts that already substantially possess the characteristics of perpetual contracts into “true” perpetual contracts with no expiration date. The exemption is valid until October 20. Before the conversion, exchanges must solicit the views of holders of open positions, provide advance notice and an opportunity to exit, and provide risk disclosures.
Key points
01
The U.S. Commodity Futures Trading Commission (CFTC) issued a “no-action” exemption.
02
The exemption allows designated contract markets (DCM) to convert certain existing contracts that already substantially possess the characteristics of perpetual contracts into “true” perpetual contracts with no expiration date.
03
The exemption is valid until October 20。
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Before the conversion, exchanges must solicit the views of holders of open positions.
05
Exchanges must provide holders with advance notice and an opportunity to exit, while also providing risk disclosures.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Simply put, eligible exchanges can formally convert certain products that were originally already similar to perpetual contracts into contracts with no expiration date. Before the conversion, however, they must solicit holders’ views, provide advance notice, allow them to exit, and explain the risks.
Why it matters to readers
This exemption directly concerns whether certain contracts may be converted from their existing form into a form with no expiration date, as well as the holder-protection requirements exchanges must fulfill during the conversion process.
Beginners should know that “no expiration date” does not mean no risk; the original text expressly requires exchanges to provide risk disclosures and an opportunity to exit during the conversion.
Risks and unknowns
The evidence comes from a Telegram relay and does not include the CFTC original announcement or exemption document; the specific scope and terms remain to be verified.
The original text only states that the exemption is valid until October 20, without specifying the year.
The original text does not specify which particular exchanges or contracts will be converted.
The original text does not state whether the exemption will be extended or adjusted after expiration.
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Related concepts
No-action exemption
This term is not in the glossary yet. Browse related concepts in the glossary.
A derivative contract with no expiration date, designed for continuous holding, whose funding rate mechanism helps keep its price close to that of the underlying asset.
