The U.S. CFTC approves the conversion of perpetual digital commodity futures contracts into truly perpetual futures contracts

The U.S. Commodity Futures Trading Commission's (CFTC) market watchdog has issued an exemption letter to the Designated Contract Market (DCM), allowing it to convert existing perpetual digital commodity futures contracts into true digital commodity perpetual futures contracts. Under the exemption letter, DCM can remove the expiration date of existing perpetual digital commodity futures contracts and implement relevant modifications to convert them into true digital commodity perpetual futures contracts. The conversion takes effect only if certain customer protection and procedural conditions set out in the exemption letter are met. These conditions include: seeking feedback from market participants holding open positions; providing advance notice and opportunities to close positions; providing appropriate risk disclosures; and ensuring that no other substantive contract terms are modified.