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 for X-Perps will satisfy ESMA and other regulatory bodies.

Nevertheless, OKX has successfully navigated the regulatory landscape in the EU, acquiring licenses such as MiCA, MiFID II, and Payment Institution licenses issued by the Malta Financial Services Authority. This regulatory framework allows the exchange to offer its products while ensuring customer protection.

Looking Ahead: The SpaceX X-Perp

As part of this new lineup, OKX also plans to introduce an X-Perp linked to SpaceX following its IPO later this week. This addition is expected to attract significant attention from traders looking to capitalize on developments in one of the most talked-about companies in the tech industry.

Why Choose OKX for X-Perps?

With the launch of X-Perps, OKX is positioning itself as a leader in the cryptocurrency exchanges space by offering diversity and flexibility to traders. The allure of 24/7 trading, combined with the ability to engage with both traditional stocks and commodities through a single account, may significantly enhance your trading experience.

For those interested in exploring OKX and its X-Perps, now is a great time to check out their offerings. Traders looking for competitive rates can find exclusive bonuses through our OKX referral page.

  • OKX has launched X-Perps for major US stocks, adding diversity to its offerings.
  • These futures come with a fixed five-year expiry and allow for 24/7 trading with up to 10x margins.
  • The ESMA has been skeptical about the classification of perpetuals, presenting regulatory challenges.
  • OKX remains fully regulated in the EU, ensuring customer protections.
  • An X-Perp linked to SpaceX is anticipated post-IPO later this week, further expanding trading options.