The Commodity Futures Trading Commission on October 5, 2026 issued a no-action letter (Release Number 9308-26) authorizing designated contract markets to strip expiration dates from their existing perpetual-style broad-based security index futures and re-list them as true broad-based security index perpetual futures.

The Division of Market Oversight grants the relief subject to four procedural and customer-protection conditions spelled out in the letter.

DCMs converting a contract must:

• Solicit feedback from market participants holding open positions in the affected contract
• Provide advance notice and an opportunity to exit those positions
• Distribute risk disclosures appropriate to a contract that no longer expires
• Leave every other material contract term unmodified

DCMs must also file the amendments under CFTC Regulation 40.5 or 40.6 and certify compliance with every condition in the letter. The relief is narrow: it reaches broad-based security index products only and does not extend to other futures categories.

What is a "true" perpetual, and why does the distinction matter?

The letter draws a structural line between the existing perpetual-style contracts and the post-conversion format. A true perpetual carries no expiration date. The source contracts, by contrast, have retained one. Removing that date is the single change the no-action position permits.

What changes for execution desks?

Booking, margining and reporting systems keyed to a fixed last-trade date must be re-mapped to a continuously tradable instrument with no settlement close. For buy-side accounts carrying index exposure, positions can persist indefinitely without a forced unwind window, which changes counterparty, collateral and reconciliation workflows tied to the original expiry.

Operations teams also face a practical lift on client communications. Holders of existing perpetual-style positions need an exit window before the conversion goes live, and the requirement that DCMs "solicit feedback" adds a documented consultation step to the project plan.

What's the regulatory pathway?

CFTC Regulation 40.5 governs amendments that have become effective at self-certifying DCMs. Regulation 40.6 covers certification of new products and material changes. Either path applies to the conversion, but the filing must accompany the customer-protection steps outlined in the letter — DCMs may not self-certify the removal of an expiration independently of the conditions.

What's the compliance clock?

The no-action positions expire on October 20, 2026 — fifteen calendar days after issuance. DCMs operating on the relief must complete the conversion by that date or seek further guidance from the Division of Market Oversight. The condensed window forces quick execution on the feedback, notice and disclosure steps.

What are the limits of the relief?

The letter permits one structural change — removal of the expiration — and explicitly forbids modification of any "other material contract terms." DCMs may not bundle pricing, margining or settlement changes into the same filing. Any further amendments still require a separate 40.5 or 40.6 process.

The narrow scope and short shelf life of the relief point to a measured rollout. Staff will observe the early conversions on broad-based security index products before deciding whether to embed the framework in a formal rulemaking or to issue a successor letter extending the no-action position beyond October 20, 2026.