ICE Bets on Retail Perpetuals as Wall Street Brings Crypto Trading Onshore
Intercontinental Exchange, the company behind the New York Stock Exchange, is making a decisive move into a market that has so far lived mostly offshore. On October 29, ICE and TradeXYZ, described as a leading deployer of real-world-asset perpetual contracts on Hyperliquid, agreed to bring those markets onshore in the United States. Under the arrangement, ICE would become the exclusive operator of TradeXYZ’s regulated markets and would take a strategic stake in the firm, whose size was not disclosed. The plan centres on a dedicated exchange and clearinghouse, to be called ICE XYZ, for round-the-clock perpetual contracts on equities, indices, commodities, currencies and crypto.
Perpetual contracts differ from traditional futures because they have no fixed expiry date. A funding mechanism keeps the contract price close to the price of the underlying asset, and a position can be held for as long as margin requirements are met. That structure has become hugely popular in crypto trading, where markets never close. Bringing it into a regulated American venue for stocks and other traditional assets, alongside crypto, would therefore be a major change, giving traders continuous access inside a supervised framework rather than through offshore or decentralised venues where protections can be unclear.
ICE is not approaching retail distribution alone. It also has a joint venture with OKX aimed at retail distribution, alongside a plan for tokenized equities and access to the NYSE brand. Tokenized equities are digital representations of shares, potentially allowing faster settlement and wider access, while the NYSE brand carries recognition that few venues can match. Together, these pieces suggest a strategy that goes beyond a single product launch, aiming at a familiar, regulated home for products that retail traders previously had to seek elsewhere.
The timing is closely linked to a regulatory shift in Washington. On November 3, Commodity Futures Trading Commission Chairman Michael Selig announced that perpetual futures on individual stocks can trade for the first time on CFTC-registered exchanges that are also notice-registered with the Securities and Exchange Commission for security futures. That dual registration is the key that unlocks single-stock perpetuals in the United States. ICE Futures US filed for exactly that registration on September 30, placing it in position to act if approval follows. It is important to be clear, however, that the partnership remains subject to regulatory approval, and no launch date, fee schedule or final product list has been confirmed. This is a direction of travel with strong institutional backing, not yet a live product.
What retail perpetual futures would change for everyday traders
For a retail trader, the most obvious change would be access to a clearer rulebook. A regulated American exchange would offer known membership rules, a recognised clearinghouse, surveillance and a venue that answers to United States regulators. That does not remove risk, and leverage can still produce large losses quickly, but it changes the legal and operational setting in which that risk is taken. Traders would know who operates the venue, how margin is handled and where to turn if something goes wrong, which is often uncertain on offshore platforms.
Round-the-clock trading would be a second change. Stock prices move on earnings, economic data and world events that do not wait for the opening bell. A perpetual contract that trades continuously would let traders react to news as it happens, rather than waiting for the next session and facing a gap in price. For crypto traders, continuous trading is already normal. For stock traders, it would be a new habit, requiring careful thinking about margin calls and price moves that can happen overnight or at weekends.
Why ICE wants to operate TradeXYZ regulated markets exclusively
Exclusivity gives ICE control over how the venue is run, and it gives TradeXYZ a powerful partner for the regulated world. ICE brings exchange technology, clearing expertise, regulatory relationships and a brand that institutions trust. TradeXYZ brings experience with perpetual contracts on real-world assets in decentralised markets, where product design and user demand have already been tested. The combination is designed to shorten the path from an offshore idea to an onshore, supervised market, without either side having to build the other’s strengths from scratch.
A strategic stake, even an undisclosed one, also aligns incentives. ICE is not merely a vendor selling technology to TradeXYZ. It has a financial interest in the venture’s success, which makes a long-term commitment more credible to regulators, clearing members and future users. At the same time, exclusivity means this particular partnership will be watched closely. If it works, other exchange groups may seek similar arrangements. If it stalls on regulatory questions, it could slow the wider onshore trend, at least temporarily.
How tokenized equities fit into the ICE retail plan
Tokenized equities are a separate but related piece of the ICE strategy. In simple terms, a tokenized equity is a digital representation of a share, recorded on a blockchain or similar ledger, while the underlying share itself remains held through established custody arrangements. Supporters argue that this format could allow faster settlement, fractional ownership and trading outside traditional market hours. Critics note that legal rights, corporate actions and investor protections must be mapped carefully, or the token could create confusion about what the holder actually owns.
ICE’s plan for tokenized equities, combined with access to the NYSE brand, suggests the company sees tokenization as a distribution and branding opportunity as well as a technology upgrade. A well-known brand can reassure retail investors who might otherwise be wary of a new format, and it can help attract issuers and market makers who want to reach a broad audience. The details of how tokenized equities would be issued, traded and settled under the ICE plan have not been fully set out in the reported facts, and those details will matter more than the headline.
What the CFTC announcement means for CFTC stock perpetuals
The announcement by CFTC Chairman Michael Selig on November 3 is the regulatory foundation for this story. By stating that perpetual futures on individual stocks can trade for the first time on CFTC-registered exchanges that are also notice-registered with the SEC for security futures, the CFTC opened a defined pathway. It did not create a free-for-all. The dual registration requirement means a venue must satisfy both the commodities regulator and the securities regulator’s notice regime, which is a meaningful hurdle and a deliberate filter.
ICE Futures US filed for exactly that registration on September 30. That filing date matters because it shows ICE was preparing before the public announcement, and it positions the exchange to move quickly if registration is granted. Filing is not approval, however, and regulators will still examine the exchange’s rules, risk controls and surveillance arrangements, and may require changes before trading begins. Approval could also come with conditions on margin, leverage, eligible participants or product scope, and retail access in particular may be phased.
For the wider market, the announcement signals that United States regulators are willing to bring a popular offshore product inside the regulated perimeter, provided the venue meets established standards. That approach, often called bringing markets onshore, aims to protect investors by giving them a supervised alternative rather than leaving them to use venues outside American jurisdiction. Whether it succeeds will depend on whether the onshore product is competitive on fees, liquidity and trading hours, as well as on safety. There is also a competitive contrast worth noting: yesterday’s coverage on this site described Cboe and the Chicago Mercantile Exchange suing the CFTC over single-stock perpetuals, while ICE has chosen to build inside the new framework rather than challenge it. The next milestones to watch are decisions on the ICE Futures US registration, any approval of the TradeXYZ partnership, and further detail on the ICE XYZ venue, its clearing arrangements and its retail offering.
FAQ
What are retail perpetual futures?
Retail perpetual futures are derivative contracts aimed at everyday traders that track an underlying asset, such as a stock, index, commodity, currency or crypto asset, without a fixed expiry date. A funding mechanism keeps the contract price close to the underlying price, and the position can be held as long as margin requirements are met. The ICE plan would bring this structure into a regulated United States venue for individual stocks, subject to approval.
Who are ICE and TradeXYZ in this deal?
ICE is Intercontinental Exchange, the group behind the New York Stock Exchange and a major operator of exchanges and clearinghouses. TradeXYZ is described as a leading deployer of real-world-asset perpetual contracts on Hyperliquid. Under their agreement, ICE would be the exclusive operator of TradeXYZ’s regulated markets and would take a strategic stake in the firm, whose size was not disclosed.
What is ICE XYZ?
ICE XYZ is the planned dedicated exchange and clearinghouse for round-the-clock perpetual contracts on equities, indices, commodities, currencies and crypto. It is a proposed venue, not yet a live trading platform, and its launch depends on regulatory approval and completion of the partnership arrangements described in the announcement.
What did the CFTC announce on November 3?
CFTC Chairman Michael Selig announced that perpetual futures on individual stocks can trade for the first time on CFTC-registered exchanges that are also notice-registered with the SEC for security futures. ICE Futures US filed for exactly that registration on September 30. The announcement opens a pathway, but it does not by itself approve any particular exchange or product.
When will retail traders be able to trade these contracts?
No launch date has been confirmed in the reported facts, and the partnership remains subject to regulatory approval. Traders should wait for decisions on the ICE Futures US registration and the partnership approval, plus further detail on products, margin and eligibility, before assuming a start date. Until then, the ICE plan is best understood as a well-backed proposal moving through the regulatory process.
Source: CoinDesk
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