JPMorgan sees limited institutional demand for perpetual futures
The bank said institutional demand for perpetual futures remains muted, with the products better suited to speculative trading than hedging.
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Summary
- JPMorgan said its client checks found little institutional interest in perpetual futures beyond speculative trading.
- The bank cited basis risk, lack of term structure and physical delivery, and clearing concerns as key barriers to adoption.
- Offshore perpetuals trading remains dominated by a small number of large participants, raising questions about scalability.
