Pepperstone Research Analyzes Evolution of 24-Hour CFD Trading and the Rise of Regulated Perpetual Swap Models

Global CFD broker Pepperstone announced the expansion of its 'Perpetual CFD' service, which transplants the 24-hour trading culture of the cryptocurrency market into traditional financial assets. This research and service update, released on July 15, 2026, focuses on establishing an environment where 24-hour trading is possible for major commodities and indices, such as gold, indices, and crude oil, moving beyond digital assets.

Chris Weston, Head of Research at Pepperstone, emphasized that the flow of information in modern financial markets occurs globally, instantaneously, and continuously. He analyzed that major market-moving factors no longer wait for the exchange's opening bell, and as a result, investors' demand for constant market access is becoming a defining characteristic of financial markets.

Traditional exchanges such as the New York Stock Exchange (NYSE) have historically adhered to operating hours designed on the premise of physical brokerage in specific regions. However, these fixed trading sessions have been identified as a factor hindering market efficiency by causing a structural mismatch with the activity patterns of modern retail investors spread across the globe.

Major market-moving developments no longer wait for the opening bell. Information is global, instantaneous, and continuous. We believe the demand for continuous market access will be a core feature of future financial markets. — Chris Weston, Head of Research at Pepperstone

Against this backdrop, the Perpetual Swaps mechanism, proven in the cryptocurrency market, is being absorbed into the regulated financial environment. Pepperstone has borrowed the advantages of perpetual futures contracts offered by existing unregulated cryptocurrency exchanges to present an alternative called Perpetual CFDs within a regulated framework where investor protection measures are in place.

Structural Features and Operational Methods of Perpetual CFDs

Unlike standard CFDs, Perpetual CFDs do not have an expiration date and use a Funding Rate system instead of interest-based overnight swaps that occur during next-day rollovers. The funding rate is set in advance every week and applied daily, serving to adjust the discrepancy between the contract price and the underlying asset price.

• Unlisted Stocks: Providing access to major private companies such as SpaceX
• Commodities: Supporting 24-hour leveraged trading in Gold and Oil markets
• Financial Indices: Enabling constant position entry and liquidation targeting major global indices

Market participants expect this service expansion to provide greater flexibility to retail investors. In particular, as the Australian Securities and Investments Commission (ASIC) adjusts regulatory costs, such as reducing retail CFD levies for 2025-26 by 23% compared to the previous period, competition for product innovation among brokers is expected to accelerate further.

However, there are also warnings about the risks posed by a 24-hour trading environment. During weekends or nighttime hours when trading volume is relatively low, spreads may widen or price volatility may spike due to a lack of liquidity, which could increase the risk of unexpected liquidation for investors using leverage.

In the future, investors should pay attention to additional guidelines that regulatory agencies in major countries, including the U.S. Commodity Futures Trading Commission (CFTC), will release regarding 24-hour trading and clearing systems. This is because these changes led by Pepperstone could serve as a catalyst for fundamentally reshaping trading practices across traditional financial markets.

In conclusion, Pepperstone's move is interpreted as a process where the 24/7 trading spirit of cryptocurrency combines with the stability of institutional finance. Investors now have tools to respond immediately to global macroeconomic events without time constraints, which is expected to contribute to the democratization of markets and the enhancement of efficiency.