CFTC Authorization Opens SGX Crypto Derivatives to US Institutions

The Singapore Exchange (SGX) has secured a key regulatory approval from the U.S. Commodity Futures Trading Commission (CFTC). Under Regulation 48.10 of the Commodity Exchange Act, qualified U.S. institutional investors can now directly access SGX's Bitcoin and Ethereum perpetual futures contracts.

Bridging Major Financial Markets

According to KC Lam, Head of Crypto Derivatives at SGX Group, U.S. participants were previously unable to trade these contracts. This development creates a direct link between U.S. traditional finance and Asian crypto liquidity pools.

"This provides U.S. institutions with a regulated gateway to Asian market hours and liquidity," Lam noted. "Connecting these two significant trading regions adds substantial value to the ecosystem."

Market Performance & Trading Metrics

Since their launch in late November 2025, SGX's Bitcoin and Ethereum perpetual futures have shown steady adoption:

  • Cumulative trading volume has reached $5.8 billion, representing approximately 400,000 contracts
  • As of August this year, daily average volume stands around 1,300 contracts with a notional value of $190 million
  • Bitcoin contracts dominate, accounting for 66% of open interest and 83% of daily volume
  • Single-day peak volume reached 11,500 contracts with a notional value of $145 million

Next Steps & Product Roadmap

SGX expects U.S. clearing members to begin onboarding clients over the next one to two months. Beyond the existing perpetual contracts, the exchange has outlined additional product plans.

The exchange is preparing to launch listed futures with set expiration dates for both Bitcoin and Ethereum, along with corresponding options products. These additions will provide institutional investors with more comprehensive risk management tools within a regulated framework.

This authorization arrives as global financial institutions show increasing interest in crypto asset exposure. With clearer regulatory pathways, more traditional players may consider entering digital asset markets through regulated venues.