Coinbase Derivatives has filed a proposed rule change to create a framework for cash-settled futures tied to individual stocks and ETF shares, including single-stock perpetual futures with no fixed expiration date. The filing was disclosed in an SEC document cited by PANews on Sept. 20. Under the proposal, the contracts would be cash settled, meaning they would not involve physical delivery of the underlying securities and would not give investors ownership rights in those securities. Coinbase Derivatives also submitted an application to the Commodity Futures Trading Commission on the same day. The proposal has not been approved by the CFTC, so the rule change is not yet in effect. The proposed listing standards would require an underlying security to have an initial market capitalization of at least $100 billion, an average daily trading volume of at least $450 million over the previous six months, and an estimated deliverable float of more than 20 million shares. The customer minimum margin requirement would be no less than 15% of the current market value of the securities futures.
Coinbase Derivatives has filed a proposed rule change to establish a framework for cash-settled futures on single stocks and exchange-traded fund shares, according to an SEC filing cited by PANews. The proposal includes single-stock perpetual futures with no fixed expiration date.
The filing says these contracts would be cash settled. They would not involve delivery of the underlying asset and would not grant investors ownership of the underlying securities.
Coinbase Derivatives also submitted an application to the Commodity Futures Trading Commission, or CFTC, on the same day. The CFTC has not approved the proposal, so the related rule change has not taken effect.
Proposed listing requirements
Under the proposed rules, an underlying security would need to have an initial market capitalization of at least $100 billion, an average daily trading volume of at least $450 million over the past six months, and an estimated deliverable float of more than 20 million shares.
The proposed customer minimum margin would be no less than 15% of the current market value of the securities futures.
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