Updated November 4, 2026.
Equity perps, perpetual futures linked to individual stocks, have reached a new regulatory milestone in the United States. On November 3, CFTC Chairman Michael Selig said the contracts could begin trading on eligible venues, while Cboe announced that same day that it had joined legal action challenging the agency’s approach.
The important distinction for readers is between a regulatory announcement and actual access. Neither that announcement nor a familiar company name proves that a particular contract is available through your broker, and exposure to a share price does not make the holder a shareholder.
Equity perps: what the CFTC statement establishes
In his November 3 statement, Selig says the contracts were deemed approved under Regulation 40.3 as security futures products. A footnote limits the relevant venues to CFTC-designated contract markets that are also notice-registered with the SEC to trade security futures.
This is not blanket permission for every crypto exchange. The chairman’s position is that the Commodity Exchange Act, federal securities laws and the regulatory frameworks of both agencies apply.
The statement does not supply a list of underlying stocks, a standard leverage ratio or an opening schedule for each broker. Those details require the actual contract specifications and venue notices, rather than an inference from the headline.
Why Cboe is challenging the pathway
In its November 3 release, Cboe says it joined the Capital Markets Alliance action alongside Citadel Securities and Healthy Markets Association. The challenge concerns CFTC approval of perpetual derivatives on US stocks and ETFs.
The group argues that the approach bypasses protections intended for securities markets. That is a litigant’s position, not a judicial finding; similarly, the CFTC’s explanation does not remove the disagreement over the proper framework.
Cboe refers to a request for injunctive relief. Its announcement does not establish that a court granted the request, stopped trading or determined how existing orders should be treated. Reporting a filed request as an effective prohibition would change the underlying fact.
A derivative is not the underlying share
A perpetual provides exposure to movements in an underlying asset without the ordinary expiration date of a futures contract. Margin obligations, periodic payments, closing rules and liquidation can still end a position: perpetual describes the instrument, not a promise that a trade can remain open indefinitely.
Do not assume that the contract provides voting rights, ownership of shares or a direct entitlement to dividends. Adjustments for dividends and corporate actions depend on the specific rulebook; a contractual cash adjustment is not the same legal entitlement as a shareholder dividend.
The equity perps label also says nothing by itself about tokenization or on-chain custody of shares. A derivative, a share held through a securities intermediary and a token representing rights against an issuer need different legal and operational checks.
Funding and margin need contract-level checks
Experience with crypto perpetuals does not make one venue’s terms transferable to another. Funding intervals, reference-price methodology and margin thresholds must be read in the actual specifications. There is no universal funding rate for this category.
Our explanation of funding rates in crypto perpetual futures separates recurring payments from gains or losses on price. Spreads, fees and financing can change the net result even when the underlying moves in the direction the trader expected.
The absence of scheduled expiry does not remove those expenses. Nor does regulatory oversight eliminate market losses, execution risk or the need to understand what happens when the account falls below its maintenance requirement.
What happens when the stock market is closed?
If a derivative trades while the main market for the share is closed, the two markets do not have identical liquidity conditions. Orders may reflect new expectations without being matched by immediately executable transactions in the underlying stock.
A perpetual price outside regular hours is therefore not automatically an executable stock quote. Our guide to after-hours stock trading and liquidity risks explains why trading hours, market-maker participation and order-book depth matter separately.
Do not infer a particular venue’s hours from the perpetual label. The contract’s trading calendar, reference market and treatment of suspensions have to be checked individually, including how pricing works during exceptional events.
SIFMA’s concerns and the next documents to watch
A November 2 SIFMA letter requests more review and public input before launch. It identifies possible effects on underlying equity markets, cross-market surveillance and manipulation, low-volume trading periods and product classification.
Those concerns frame questions, not proof that every proposed contract will cause the alleged harm. Evaluating an actual offering requires its pricing methodology, clearing arrangements, safeguards and final rules.
| Issue | What is established and what remains open |
|---|---|
| CFTC milestone | Selig describes a security-futures pathway on eligible exchanges, not every platform. |
| Cboe action | A challenge and request for relief were announced; the release establishes no court ruling. |
| Product access | Depends on the venue, intermediary, residence and account. |
| Rights and costs | A derivative is not a share; funding, margin and adjustments are contract-specific. |
Following equity perps now means watching three separate records: any judicial order, final exchange specifications and broker eligibility terms. A broad announcement about market access cannot substitute for any of them.
For readers outside the United States, this US regulatory development does not establish local availability or suitability. This is reporting on a contested market structure, not a recommendation to trade or an endorsement of a provider.
