Coinbase has submitted an application to the Commodity Futures Trading Commission to introduce single-stock perpetual futures within the United States, aiming to extend a derivatives instrument heavily utilized in cryptocurrency trading to individual domestic equities.
The application, presented on Friday via Coinbase Derivatives, requests official permission for contracts that would grant American investors 24/5 access to separate equities without necessitating the acquisition of the underlying assets. Perpetual futures diverge from standard futures agreements because they lack an expiration date.
Coinbase explained that these offerings would expand upon its current American perpetual futures market, introducing this framework for individual equities to US participants. The proposed agreements are categorized by the CFTC as single-stock futures and await regulatory authorization.
Source: Coinbase
The Wall Street Journal noted on Friday that Coinbase intends to initially roll out perpetual swaps linked to approximately 50 to 60 companies, such as Apple, Microsoft, Tesla, and Nvidia.
This CFTC submission succeeds a prior compliance move by Coinbase Derivatives, which submitted a Form 1-N to the Securities and Exchange Commission on September 1 to become certified as a national securities exchange for the purpose of providing security futures.
Coinbase already supplies equity perpetual futures to qualified traders located outside the US, having released the instrument back in March featuring contracts tracking prominent American equities and benchmarks, including Apple and Nvidia. At that time, the organization stated that the instruments were restricted from US residents while noting its ongoing efforts to widen availability to additional territories.
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