Overview: A Landmark Move in Regulated Finance
The Amsterdam-based fintech One Trading has secured regulatory clearance to launch 24/7 perpetual futures on equities, marking what the company describes as the first instance of such a product in a fully regulated market. The approval, granted by the Dutch Authority for the Financial Markets (AFM), expands access to continuous trading for equity derivatives and signals a notable shift in the regulatory landscape for innovative trading venues.
What These 24/7 Equity Perpetuals Mean
Equity perpetuals are a type of derivative that does not have a fixed maturity date, allowing traders to hold positions indefinitely. The 24/7 nature removes the traditional weekend and overnight gaps, providing round-the-clock liquidity and potentially tighter spreads. For investors and institutions, this could improve price discovery and risk management, especially in a global market where equities are traded across multiple time zones.
One Trading emphasizes that its 24/7 perpetuals are designed with robust risk controls and clear settlement mechanics to align with existing market infrastructure. The product aims to deliver continuous access to equity exposure, while maintaining attention to leverage, margin requirements, and governance standards that are critical in regulated environments.
Regulatory Context and Compliance
The AFM’s extension of One Trading’s license demonstrates a growing openness among European regulators toward innovative trading formats, provided they meet stringent oversight. This development aligns with broader European efforts to harmonize market infrastructure and ensure investor protection in the face of increasingly around-the-clock financial activity.
Regulators highlight important safeguards, including transparent pricing, clear disclosure of product features, risk warnings, and strong capital and liquidity requirements for venues offering perpetual products. By approving the product in a regulated framework, Dutch authorities aim to balance innovation with systemic risk mitigation and consumer protection.
Implications for Market Participants
For traders, fund managers, and proprietary desks, the availability of 24/7 equity perpetuals opens new avenues for hedging and tactical positioning outside traditional market hours. The instrument may facilitate cross-border strategies and enable more responsive risk management in volatile periods when equity prices react to global news cycles.
Brokerages and liquidity providers will need to adapt their connectivity, risk monitoring, and back-office processes to accommodate perpetuals’ unique lifecycle. Clear execution, settlement, and collateral rules will be essential to maintain market integrity and ensure smooth operation in a continuous trading environment.
One Trading’s Strategic Vision
One Trading positions itself as a forward-looking platform that blends advanced technology with a disciplined regulatory approach. The 24/7 equity perpetuals initiative aligns with the company’s aim to expand access to sophisticated financial instruments while maintaining high standards of transparency and compliance. As the firm scales this product, the industry will watch how liquidity, volatility, and price formation evolve in a nonstop equity environment.
What Comes Next
Industry observers will be tracking user adoption, liquidity depth, and the competitive response from other venues in Europe and beyond. Regulatory bodies may issue further guidance or adjustments as the market learns how best to integrate perpetuals into traditional portfolios. For market participants, ongoing education on risk management, product features, and regulatory expectations will be key to leveraging this new capability effectively.
Conclusion
The AFM’s approval of One Trading’s 24/7 equity perpetuals marks a noteworthy milestone in regulated finance, signaling a future where continuous trading of sophisticated derivatives may become more common in mature markets. If successful, this product could reshape how investors access equity exposure and manage risk around the clock, all within a framework designed to protect market integrity and participant interests.
