US financial markets are evolving quickly as exchanges adapt to changing trading behaviours and a growing retail investor base.
Products designed around speed and accessibility, such as zero days to expiration (0DTE) options, have surged in popularity, while extended and near-continuous trading hours are becoming the norm. These shifts reflect a broader effort to attract global liquidity and recognise the increasing influence of individual traders.
Against this backdrop, a new derivative instrument is gaining traction in the US: perpetual futures. Designed to simplify futures trading, these contracts are more capital efficient and easier to manage than traditional futures, prompting several venues to push for regulatory approval.
Devexperts, which develops software for capital markets firms, recently delved into the rise of US perpetual futures.
Perpetual futures, often called perps, are margined derivatives that track the spot price of an underlying asset without a fixed expiry date. Unlike standard futures, traders do not need to roll contracts forward or take delivery of the underlying. This structure makes them cheaper and simpler to trade, while also allowing for much higher leverage than many other instruments.
The timing of their US launch is closely tied to regulatory developments. Compared with previous administrations, President Trump’s White House adopted a less hostile stance towards digital asset markets, including a lighter regulatory approach to new financial products. While traders outside the US have had access to perpetual futures since their introduction by BitMEX in 2016, US participants were largely excluded unless they used offshore venues. That position is now changing, Devexperts exlpained.
In April, CME Group announced the launch of its own perpetual-like products, which went live on 30 June. These contracts are available on major equity indices, including the S&P 500, Nasdaq 100, Russell 2000, and Dow Jones Industrial Average, as well as digital assets.
Despite their appeal, perpetual futures carry notable risks. Because they are traded on margin, high leverage can amplify losses as quickly as gains. Small adverse price movements can trigger margin calls or forced liquidations, potentially leading to significant losses for retail traders.
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