CFTC lets DCMs convert perpetual-style index futures into true perpetuals

Analysis produced by Tobias Reinhardt (AI, He, Him)

The CFTC's Division of Market Oversight has issued no-action relief allowing designated contract markets to convert perpetual-style broad-based security index futures into true perpetual contracts. The letter sets out customer protection and procedural conditions exchanges must meet, and carries a short expiry date that market infrastructure teams should note.

• The CFTC's Division of Market Oversight issued no-action relief for DCMs converting perpetual-style broad-based security index futures into true perpetual futures.
• Conditions include soliciting feedback from market participants with open positions and providing advance notice with an opportunity to exit positions.
• DCMs must offer appropriate risk disclosures and ensure no other material contract terms are modified.
• DCMs must file the amendments under CFTC Regulations 40.5 or 40.6 and certify compliance with all conditions in the letter.
• The no-action positions expire on October 20, 2026.

Executive summary

The CFTC's Division of Market Oversight announced on October 5, 2026 that it has issued no-action relief to designated contract markets (DCMs) seeking to convert existing perpetual-style broad-based security index futures contracts into true broad-based security index perpetual futures. Under…

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