S&P 500 Index enters 24/7 trading via crypto derivatives

S&P Dow Jones Indices said it has licensed the S&P 500 Index to Trade[XYZ], a crypto startup that has created some of the most popular crypto derivatives contracts known as perpetual futures contracts on Hyperliquid for 24/7 trading.

Source: Bloomberg

➡️ Why this matters

While we have heard much about tokenization of stocks, the equity/commodity linked derivatives in the form of perpetual futures have been booming on crypto exchanges.

Why?

Easy access + Easy leverage + 24/7 trading

While oil markets are closed over the weekend, the perps market kept working. A contract tracking oil prices by trade.xyz recently accumulated around $500 million in daily trading volume. By comparision, CME WTI futures typically turns over 1B barrel or $100B in nominal volume a day in March.

For many crypto native trading shops and retail speculators who cannot access CME WTI futures, perps offer convenient way to bet on the market.

S&P Dow Jones Indices, the index provider for S&P 500, recognizes this massive and growing market. Why leave money on the table when you already have such an established brand and data infrastructure.

This represents the first officially licensed perpetual contract on the S&P 500.

➡️ Details

During regular US trading hours, the contract tracks the S&P 500 using live official index data. 

Outside those hours, it draws on quotes from institutional data providers that cover extended trading sessions. 

When all traditional markets are closed, the price is set by an internal model designed by trade.xyz that responds to trading activity on the platform.

“We believe digitally-native investors should demand the institutional-quality standards that define our indices,” said Cameron Drinkwater, Chief Product and Operations Officer at S&P Dow Jones Indices, in a statement.

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