U.S. CFTC Releases Staff Guidance for 24/7 Markets, Says Crypto Derivatives Are Better Suited

The U.S. Commodity Futures Trading Commission (CFTC) said its divisions of Market Oversight and Clearing and Risk have issued joint staff guidance setting out regulatory expectations and compliance requirements for the expanding model of round-the-clock trading, clearing, and settlement. The guidance is intended to support market innovation while keeping firms within the existing rulebook. It states that regulated trading venues, swap execution facilities, derivatives clearing organizations, and futures commission merchants must continue to comply with the Commodity Exchange Act (CEA) and related CFTC regulations as they move toward 24/7 operations. Firms are also expected to proactively evaluate their risk management frameworks and operational arrangements. CFTC staff noted that not all asset classes are equally suitable for continuous operation. Crypto asset-related derivatives, supported by digital infrastructure and a globally continuous trading environment, were cited as more compatible with 24/7 trading and clearing. Traditional commodity derivatives, including agricultural products, may be less suited to full 24/7 operation due to geographic and structural constraints. CFTC staff said institutions should strengthen compliance and risk controls as the market evolves, aiming to promote what the agency described as \u0022responsible market innovation\u0022.