Overview
- U.S. regulators have allowed exchanges to list regulated perpetual futures, a shift that has already produced strong early volume and new product launches onshore.
- A legal dispute is unfolding over whether perps are futures or swaps, a distinction that will change margin rules, registration duties and who can provide liquidity.
- Perps work without expiries by using a funding-rate payment between longs and shorts roughly every eight hours to keep contract prices close to spot.
- Industry leaders say high leverage, automatic deleveraging and 24/7 trading are exchange design choices rather than inherent contract features, and some argue real-time settlement could change margining and risk models.
- Large banks are cautious and likely to wait for clearer rules and deeper liquidity, while proprietary traders and market makers are poised to be the early providers of the capital that will support growth.