Coinbase files for perpetual futures on US stocks, CFTC approval pending

Coinbase Derivatives has submitted a proposed framework for perpetual futures linked to individual US stocks and exchange-traded funds, pending regulatory approval. The Securities and Exchange Commission notice from Sept. 18 indicates that the Commodity Futures Trading Commission has not yet approved the proposed rule change. As of Sept. 22, the CFTC product register still lists the Single Stock Perpetual Futures Contract as 'Approval Pending.' This filing serves as a public proposal rather than an accessible product for traders, detailing how the contracts would function if approved. The proposal includes cash-settled futures on individual equities and ETFs, with no fixed expiration date. These contracts would allow traders to gain exposure to price changes without owning the underlying shares, resolving gains and losses through monetary payments instead of stock delivery. Open positions would incur funding payments, with specific methodologies outlined in a product appendix. The proposed trading week is set from Sunday at 8 p.m. Eastern to Friday at 5 p.m. Eastern, subject to interruptions. Despite outlining features such as no-expiry contracts and extended trading hours, the CFTC approval remains pending, and claims of product availability are premature.

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