The U.S. derivatives regulator is reviewing CME Group Inc.’s move to offer round-the-clock trading in some crude oil and gold futures amid concerns about volatility, surveillance and risk controls.
The CFTC (U.S. derivatives regulator) is considering whether to stop CME Group Inc. from rolling out 24/7 trading for some crude oil futures, Bloomberg reported on June 15, citing regulatory concerns about off-hours volatility, market surveillance and risk management. CME said Thursday it would introduce round-the-clock trading for some crude oil and gold futures contracts. Bloomberg also cited an unnamed senior official as saying the announcement caught the regulator by surprise, highlighting potential tension between exchange innovation and oversight of nearly continuous derivatives markets.