CFTC issues no-action relief for DCMs converting perpetual-style digital commodity futures, expiring 30 June 2026
DCMs can convert perpetual-style digital commodity futures to true perpetuals only by meeting the letter's conditions and filing before the relief expires 30 June 2026
Change
On 12 June 2026 the CFTC Division of Market Oversight issued a no-action letter letting designated contract markets remove expiration dates from existing perpetual-style digital commodity futures and convert them into true perpetual futures, conditional on customer-protection and procedural steps and a Regulation 40.5/40.6 filing — with the no-action positions expiring 30 June 2026.
Why it matters
The no-action relief lets DCMs convert perpetual-style digital commodity futures into true perpetual futures, but only on conditions: solicit feedback from holders of open positions, give advance notice and an exit opportunity, provide appropriate risk disclosures, modify no other material terms, file the amendments under CFTC Regulation 40.5 or 40.6, and certify compliance. It is Division-level staff relief, not a Commission rule, and it is time-boxed — the no-action positions expire 30 June 2026, so a DCM must complete the conditions, file and certify before that date to be covered.
Implications
- — DCMs intending to convert must complete the letter's customer-protection steps — soliciting feedback from participants with open positions, giving advance notice and an opportunity to exit, and providing appropriate risk disclosures, with no other material contract terms changed — before removing expiration dates, as the relief is unavailable where these steps are not met.
- — DCMs must file the contract amendments under CFTC Regulation 40.5 or 40.6 and certify compliance with the conditions before implementing a conversion — unfiled or uncertified amendments fall outside the no-action position.
- — DCMs must complete the conditions, filing and certification before 30 June 2026 — the no-action positions expire on that date, after which conversions no longer carry the relief; with the expiry roughly two weeks out, the window to rely on it is short.
Who is affected
- — Compliance and legal teams at designated contract markets converting perpetual-style digital commodity futures
- — Product and market-operations teams at DCMs filing the Regulation 40.5/40.6 amendments
What to watch
- — 30 June 2026: the no-action positions expire — a DCM must complete the conditions, file under Regulation 40.5/40.6 and certify before this date, or a conversion no longer carries the relief.