CFTC: Some derivatives markets are not suitable for 24/7 trading

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Crypto World News reports that the U.S. Commodity Futures Trading Commission (CFTC) has warned that regulated derivatives platforms, offering 24/7 trading, may be suitable for the crypto market but could be unsafe in traditional asset classes. The CFTC pointed out in its advice on Friday that exchanges and clearinghouses should carefully evaluate products before expanding trading and clearing to a 24/7 model. The CFTC also permits regulated crypto platforms to offer perpetual futures and global options. Coinbase stated that this approval allows its regulated subsidiary to add the largest and most liquid category in global crypto trading to its existing 24-hour platform. The CFTC noted that not all markets are suitable for perpetual trading hours; agricultural derivatives may face different restrictions. The agency emphasized that trading platforms should serve as the first line of defense against market abuse and recommended that companies expanding trading hours increase compliance controls to address the risks of continuous access.
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RefrigeratorMagnetContract
· 15h ago
The point that agricultural futures restrictions differ is very detailed, indicating that regulators truly understand the industry and are not applying a one-size-fits-all approach.
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ForkMoment
· 17h ago
The most interesting part is "not all markets are suitable," which leaves the CFTC a pretty big escape route for itself.
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HotAirBalloonViewingSchedule
· 17h ago
The 24/7 clearing risk is underestimated. Who do you turn to when your position is liquidated at 3 a.m.?
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NotYourExitLP
· 18h ago
Agricultural derivatives are indeed not suitable for all-weather trading; can the harvest season be the same as Bitcoin halving?
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VintageKeychain
· 18h ago
Coinbase says it has “the world’s largest liquidity”—CME probably won’t be too pleased to hear that.
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