CFTC Weighs Blocking CME’s 24/7 Crude Oil Futures Contract Proposal

The U.S. Commodity Futures Trading Commission (CFTC) is considering whether to block CME Group’s application to launch a 24/7 crude oil futures contract, Bloomberg reported. According to ChainCatcher, a senior CFTC official said round-the-clock trading may be unsuitable for crude oil because it could amplify already extreme volatility during periods of geopolitical tension. CME announced last Thursday that it plans to introduce futures contracts for crude oil and gold that would trade 24 hours a day, seven days a week, a move the CFTC said caught it by surprise. The proposed crude oil product would be one-tenth the size of CME’s existing Micro WTI futures contract and is scheduled to launch on August 30, pending regulatory review. Separately, CME’s chief executive had voiced “serious concerns” a week earlier about the CFTC clearing a path for crypto perpetual contracts. The CFTC said it will evaluate perpetual contract applications on a case-by-case basis and that some assets may not be suitable for the product.