The CFTC has issued waivers to Designated Contract Markets, allowing existing perpetual digital commodity Futures Contract to be converted into “real” perpetual contracts by removing the expiration date.
This regulation is governed by the Market Surveillance Division's waiver letter and includes customer protection conditions and procedural requirements. DCMs must fully meet the conditions stated in the letter before making the transition.
Among the requirements, the exchange must solicit input from those holding open positions, provide advance notice and opportunities to close positions, and offer appropriate risk warnings.
The waiver also requires that other core terms of the contract not be changed beyond adjustments to transition to a new perpetual form.
