CFTC Seeks Public Comment on Extending Futures Trading and Perpetual Contracts in Energy Markets

The Commodity Futures Trading Commission (CFTC) has issued a call for public comments regarding two significant potential changes in energy derivatives trading. The first concerns extending the trading hours of standard futures contracts, including those for energy, to operate around the clock without altering their expiration dates. This move aims to accommodate the increasing demand for continuous trading, especially in global markets. The second focuses on the possible introduction of perpetual contracts that reference physically delivered or storable energy commodities such as crude oil. Perpetual contracts are a type of derivative that do not have an expiration date, offering traders more flexibility.

The CFTC emphasizes that these proposals are part of its effort to support responsible innovation while maintaining protections against market manipulation and disruption. The agency seeks to gather data and opinions from market participants to better understand the implications of these changes.

Comments on these proposals are to be submitted in writing within 30 days of the publication of the request in the Federal Register. The feedback will help the CFTC decide whether to proceed with regulatory adjustments that could reshape energy derivatives trading practices.