regulation
CFTC Issues Advisory on 24/7 Trading and Clearing
The CFTC has issued a staff advisory on the regulatory considerations for 24/7 trading, clearing, and settlement, emphasizing responsible innovation and compliance requirements.
AS1 NewsSource: cftc.gov
The Commodity Futures Trading Commission (CFTC) has released a new advisory through its divisions, including the Division of Clearing and Risk, regarding the growing trend of 24/7 trading, clearing, and settlement in markets involving digital assets. This advisory aims to promote responsible innovation while reminding market participants of their regulatory obligations under the Commodity Exchange Act. It highlights that derivatives referencing crypto assets are particularly suitable for 24/7 trading due to their digital infrastructure and global reach. Conversely, markets such as agricultural products may not be as well-suited for continuous trading because of their regional nature and specific customer bases. The staff encourages registrants to proactively ensure their markets evolve in compliance with existing regulations, fostering a safer and more transparent trading environment.
The advisory clarifies regulatory expectations for 24/7 trading, which could influence how digital asset derivatives are traded and cleared in the US market.