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CFTC Seeks Public Input on Extending Futures Trading Hours and Perpetual Contracts for Energy Commodities

The Commodity Futures Trading Commission is requesting public comments on extending standard futures contracts to 24/7 trading and on the listing of perpetual contracts referencing physically delivered or storable energy commodities, such as crude oil.

AS1 NewsSource: cftc.gov

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The Commodity Futures Trading Commission (CFTC) has issued a call for public comments regarding two key developments in the energy derivatives markets. First, it seeks opinions on extending the trading hours of standard futures contracts, including energy futures, to operate around the clock without changing their expiration dates, but with potential economic adjustments to delivery or settlement terms. Second, it invites feedback on the possible listing of perpetual contracts that reference physically delivered or storable energy commodities like crude oil.

Chairman Michael S. Selig emphasized that collecting data and public input will help the CFTC understand the implications of these changes. The goal is to support responsible innovation in the market while maintaining protections against manipulation and disruptions.

The public comments are expected to shed light on how these modifications could influence market behavior, liquidity, and risk management. The CFTC plans to analyze the feedback to guide future regulatory decisions.

This development is significant for traders, exchanges, and projects involved in energy derivatives, as it could lead to more flexible trading options and new contract types, potentially affecting the pricing and liquidity of energy-related tokens and assets.

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The proposed changes could influence energy derivatives markets and related tokens or projects by increasing trading flexibility and introducing new contract types.