Today crypto exchange OKX announced a raft of new X-Perp futures in the EU, including for Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla stocks, alongside Gold, Silver, WTI Crude Oil and Brent Crude Oil. It also offers X-Perps linked to ETFs tracking the Nasdaq 100 (QQQ) and S&P 500 (SPY) indices. The key benefits include 24/7 trading and margin of up to 10x. A SpaceX X-Perp will also be available after its IPO later this week. The news comes after EU regulator ESMA noted in February that most perpetual futures are likely to qualify as contracts for difference (CFDs).
“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,” said Erald Ghoos, CEO of OKX Europe. “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.”
OKX launched its X-Perps brand in April, which operate very similarly to perpetuals but have a fixed five year expiry date. The April launch was for X-Perps linked to cryptocurrencies. Like perpetuals, X-Perps use a funding rate to drive prices towards the spot price. If the X-Perps price is below the spot price, then those with short positions pay a small fee to those that are long. This directional fee will end up moving the futures price higher. Likewise, if there is strong demand for long positions, the futures price might rise above the spot price, and the funding fee on long positions will drive the price down.
OKX has access to the EU based on several licenses including MiCA, MiFID II and Payment Institution licenses issued by the Malta Financial Services Authority. There is skepticism in the TradFi world that the five year expiry will satisfy ESMA and other national regulators.
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