According to ChainCatcher, the U.S. Commodity Futures Trading Commission (CFTC) Market Surveillance Division has issued an exemption letter to Designated Contract Markets (DCMs), allowing them to convert existing perpetual digital commodity futures contracts into true digital commodity perpetual futures contracts.
According to the waiver, DCM can remove the expiration date from its existing perpetual digital commodity futures contracts and implement the necessary modifications to convert them into true digital commodity perpetual futures contracts. The conversion is contingent upon meeting several customer protection and procedural conditions stipulated in the waiver. These conditions include: soliciting feedback from market participants holding open positions; providing advance notice and opportunities to close positions; providing appropriate risk disclosure; and ensuring that no other substantive contract terms are modified.
