OKX launches X-Perps on US stocks in EU, despite ESMA pushback on perpetuals

OKX launches X-Perps for popular US stocks and commodities in the EU, despite pushback from ESMA, offering traders new futures options including major ETFs.

In a bold move, OKX has just rolled out its new X-Perps futures for popular US stocks in the European market. This launch includes prominent names like Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla, along with commodities such as Gold, Silver, WTI Crude Oil, and Brent Crude Oil. Additionally, traders can now access X-Perps linked to ETFs tracking major indices like the Nasdaq 100 (QQQ) and S&P 500 (SPY). What Are X-Perps and Their Benefits? OKX's X-Perps, introduced earlier this year, operate similarly to perpetual contracts but come with a unique twist—a fixed expiry date of five years. This innovative product opens up continuous trading opportunities for users, available around the clock, with the added benefit of margins up to 10x. According to Erald Ghoos, CEO of OKX Europe, “European traders are sophisticated. They know exactly what’s moving markets. They watch earnings, Fed decisions, commodity prices, and geopolitical events, but they’ve had no way to act on any of them. X-Perps fix that. One account, every market, 24/7. And because we’re fully regulated, our customers get the protections that come with that.” How Do X-Perps Work? X-Perps utilize a funding rate mechanism that drives their prices toward the underlying spot prices. If the price of an X-Perp falls below the spot price, those holding short positions pay a small fee to long position holders, which can elevate the futures price. Conversely, strong demand for long positions may result in the futures price exceeding the spot price, leading the funding fee on long positions to adjust the price downward. What About Regulatory Concerns? This announcement comes on the heels of pushback from the European Securities and Markets Authority (ESMA), which expressed concerns about the classification of many perpetual futures, suggesting they might qualify as contracts for difference (CFDs). As of February, skepticism exists within traditional finance circles regarding whether the five-year expiry