CFTC Issues No-Action Letter on Converting Existing Broad-Based Securities Index Futures into True Perpetual Contracts
CFTC Issues No-Action Letter for DCMs Regarding Converting Existing Perpetual-Style Broad-Based Security Index Futures into True Perpetual Futures
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CFTC’s Division of Market Oversight issued no-action relief to designated contract markets (DCMs) seeking to convert existing perpetual-style broad-based securities index futures into true perpetual contracts. DCMs may remove contract expiration dates after meeting the conditions in the letter, including soliciting feedback from market participants holding open positions, providing advance notice and an opportunity to exit, disclosing appropriate risk information, and making no other material changes to the contract terms.
The letter sets out customer protection and procedural conditions for removing expiration dates, and establishes an expiration date for the no-action position, outlining the regulatory boundaries for such contract conversions.
Source:CFTC — Press releases · cftc.gov