Overview
The U.S. Commodity Futures Trading Commission (CFTC) is weighing whether to block CME Group’s proposal to introduce a round‑the‑clock crude oil futures contract, according to a Bloomberg report that cites a senior agency official.
Contract Details
CME announced on Thursday that it intends to launch 24‑hour, seven‑day‑a‑week trading for certain crude oil and gold futures. The oil contract would be one‑tenth the size of CME’s existing Micro WTI futures and is scheduled for an August 30 launch, subject to CFTC approval. The gold product is a 1‑ounce contract slated to begin continuous trading on July 26, also pending regulatory clearance. A CME spokesperson declined to comment on the report.
Regulatory Concerns
Regulators have expressed worry that continuous trading in crude oil futures could amplify price volatility during periods of geopolitical uncertainty and market stress. The CFTC has indicated it evaluates applications for perpetual futures on a case‑by‑case basis and may deem certain assets unsuitable for that structure.
Related Market Activity
The discussion follows a week after CME Chief Executive Terry Duffy raised concerns about the CFTC’s decision to permit trading in perpetual cryptocurrency futures, known as “perps.” Perpetual futures are the primary instrument on the Hyperliquid platform, where trading volumes in oil‑linked products have risen amid heightened volatility linked to the Iran‑Israel conflict. CME and Intercontinental Exchange have previously urged regulators to scrutinise unregulated venues offering similar products.
Market Reaction
At the time of reporting, related futures and equity tickers showed mixed moves: ICE up 1.11 %, gold futures (GC) up 3.03 %, crude oil futures (CL) down 3.23 %, CME stock up 2.80 %, and other related instruments showing modest changes.