U.S. CFTC Weighs Move to Halt CME's Planned 24/7 Crude Oil Futures

The U.S. Commodity Futures Trading Commission (CFTC) is weighing whether to block CME Group's request to launch a round-the-clock crude oil futures contract, Bloomberg reported. A senior CFTC official said 24-hour trading may be ill-suited to crude oil, warning it could amplify already sharp price swings during periods of geopolitical stress. CME said last Thursday it plans to roll out 7-day, 24-hour weekly futures contracts for crude oil and gold, a proposal that the regulator did not anticipate. The crude oil contract would be one-tenth the size of the existing Micro WTI futures contract and is slated for an Aug. 30 launch, subject to regulatory review. A week earlier, CME's CEO voiced "serious concerns" about the CFTC's steps to clear the way for cryptocurrency perpetual contracts. The CFTC said it will assess applications for perpetual products on a case-by-case basis and noted that some assets may not be suitable for the structure.