SGX Seeks CFTC Approval to Offer Crypto Perpetuals

What SGX Is Bringing to the US

Singapore Exchange Ltd. is pushing to let US institutions trade its crypto perpetual futures, after lodging a filing with the Commodity Futures Trading Commission in the past month. As a registered overseas exchange, SGX is permitted to make the products available to US institutional investors unless the agency objects within 10 days.

If it clears that process, SGX would be the first large, established exchange to usher one of crypto's hallmark trades into the mainstream. After listing Bitcoin and Ether perps last November, the exchange plans to court a wider spectrum of institutions, including hedge funds, asset managers, and prop trading firms.

Perpetual futures, or perps, let traders use leverage without dealing with contract expirations. As regulators warm up to the idea, more traditional exchanges are rolling out their own takes, vying for share in a derivatives market that tallies hundreds of billions of dollars in monthly turnover.

How These Perps Work on SGX

Putting perps on a traditional venue means some crypto-native quirks get smoothed out. SGX lists them for 22.5 hours each weekday rather than nonstop. Members must post 35% margin and fund positions with fiat collateral, and the exchange does not employ the automatic deleveraging features common on some crypto platforms.