JPMorgan has stated that client checks revealed little institutional interest in perpetual futures. The bank noted that these contracts are primarily used for speculative trading rather than for hedging actual risks:
- JPMorgan indicated that client surveys showed institutional interest in perpetual futures remains low.
- The bank cited basis risk, lack of term structure, and physical delivery issues as barriers to adoption.
- Offshore perpetual futures trading remains dominated by a small number of large participants.
JPMorgan's analysts noted that perpetual futures do not offer incremental benefits over traditional derivatives. They explained that U.S. institutional investors are not attracted because traditional clearing protections are absent.
