US regulators plan to block CME Group's application to launch a 24-hour oil contract.

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BlockBeats news: On July 9, the U.S. Commodity Futures Trading Commission (CFTC) plans to block the Chicago Mercantile Exchange (CME) from fast-tracking the listing of the Chicago Mercantile Exchange fast-tracked 24x7 oil contracts, citing concerns that the energy market is not yet ready to handle a flood of around-the-clock derivatives contracts.

In June, CME said it planned to offer around-the-clock trading for a futures contract denominated in 10 barrels and linked to WTI crude oil, saying investors want to manage their positions “whenever news breaks.” On Wednesday, CME filed a self-certification application for the new product, which means the CFTC has only one day to intervene; otherwise, the contract will be eligible to be listed for trading. According to people familiar with the matter, the CFTC plans to block CME’s self-certification.

In recent weeks, CFTC Chair Michael Selig has met with executives from energy companies including Shell, Vitol, BP, and ExxonMobil. Another application submitted by CME for the same product (subject to a 45-day review period) remains under review by the regulator.

CME-1.37%
CL-2.67%
SHEL-1.04%
BP-1.73%
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