CFTC Seeks Public Comments on Standard Futures Contracts 24/7 Trading and Listed Energy Perpetual Contracts

On June 22, the U.S. Commodity Futures Trading Commission (CFTC) issued a notice seeking public comments on two significant developments in the energy derivatives market.

The topics for consultation include extending the trading hours of standard futures contracts to 24/7 around the clock, and whether to allow the launch of perpetual contracts based on physically settled or storable energy commodities (such as crude oil).

CFTC Chair Michael S. Selig stated that when registered entities extend trading hours and introduce new contract designs, only by building a clear data recording system can the Commission more accurately assess the impact of these changes on the market.

He pointed out that this public consultation aims to support the Commission in responsible innovation while also committed to maintaining the market participants and the public’s reliance on anti-manipulation and market disruption protection mechanisms.

Specifically, this consultation mainly revolves around two core issues. First, the proposal to convert standard futures, including energy futures, into 24-hour around-the-clock trading, while retaining the original contract expiration dates, with no substantive changes to delivery and settlement terms.

Second, the focus will be on the particularities of perpetual contracts, especially when they involve physically settled or storable energy commodities, due to the unique structure of such products requiring separate regulatory assessment.

Currently, the CFTC plans to use the information and comments received this time to enhance the precision of their evaluation of these developments. The public must submit written feedback within 30 days of the publication of this notice in the Federal Register.

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