CFTC seeks comment on 24/7 energy futures and perpetual contracts
The U.S. derivatives regulator opened a 30-day comment process on round-the-clock trading for standard energy futures and on whether perpetual contracts tied to physically storable commodities such as crude oil should be allowed.
The Commodity Futures Trading Commission is seeking public feedback on two potential changes to U.S. energy derivatives markets: allowing standard energy futures to trade 24/7 while keeping current expiration, delivery and settlement terms, and considering perpetual contracts tied to physical energy commodities such as crude oil. Chairman Michael S. Selig said the review is intended to build a clear, data-driven record while balancing innovation with market integrity, with comments due within 30 days after publication in the Federal Register. The consultation builds on the agency’s late-May approval of the first U.S.-listed Bitcoin perpetual futures contract and raises whether crypto-style market structures can be adapted to commodities that involve storage, delivery obligations, thinner off-hours spot liquidity and greater risks of price distortion or manipulation during non-peak trading hours.
- perpetual contracts: Derivatives that do not have a fixed expiration date and are designed to trade continuously.
- physically delivered: A contract structure in which the actual commodity, rather than cash alone, can be delivered at settlement.
- funding-rate mechanisms: Pricing tools used in some perpetual contracts to help keep derivatives prices aligned with the spot market.