SGX Wins CFTC Approval for US Access to Bitcoin, Ether Perpetuals
SGX has secured approval from the US Commodity Futures Trading Commission (CFTC) to offer its Bitcoin and Ether perpetual futures directly to American institutional investors. The CFTC's Regulation 48.10 allows registered Foreign Boards of Trade, like SGX, to grant US participants direct access to their products without requiring those participants to register domestically.
According to KC Lam, head of crypto derivatives at SGX Group, the approval is an 'important milestone' for connecting American finance participants with Asian liquidity pools. The exchange launched its Bitcoin perpetual (BTP) and Ether perpetual (ETP) contracts in November 2022, which have traded a cumulative $5.8 billion in volume since then.
The key difference between SGX's perpetuals and those offered on crypto-native exchanges is the risk framework. Unlike crypto-native venues where sudden volatility can trigger auto-liquidations, SGX uses margin calls. The exchange also excludes stablecoins as acceptable collateral, citing depegging risk.