Ondo seeks U.S. approval for stock perpetual futures

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Ondo seeks U.S. approval for stock perpetual futures
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Ondo Finance asked the SEC and CFTC in three Aug. 24 comment letters to allow perpetual futures tied to individual U.S. stocks to trade domestically under existing security futures rules, arguing the statutory definition does not require a fixed expiration date. The company points to modern margin systems and onchain market data as compatible with current rules and wants to repatriate activity that its Panama affiliate has handled, which reached about $8 billion in cumulative volume as of Aug. 14. Regulators will consider coordination, investor protection, margin rules and market surveillance before deciding whether to adapt implementation rather than create a new framework.

Ondo argues existing security futures rules can cover perpetual stock futures.

Context

Ondo sent three comment letters to U.S. regulators on Aug. 24. They ask regulators to treat perpetuals as security futures under current law. Regulators could accept the view or require new rules and implementation changes.

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