CFTC Seeks Input on 24/7 Futures, Energy Perpetuals Trades
The CFTC is seeking public input on 24/7 trading for energy futures and perpetual contracts, addressing industry concerns about offshore platforms and risk levels.
The Commodity Futures Trading Commission (CFTC) has issued a request for public input on the potential introduction of 24/7 trading for traditional energy futures and the allowance of perpetual contracts, known as perps, in the energy sector. The move comes after major industry players raised concerns about the growth of offshore trading platforms and the associated risk levels.
The CFTC's request for comment covers two key areas: round-the-clock trading for energy derivatives such as crude oil and natural gas futures, and the legalization of perpetual futures contracts that have become popular in cryptocurrency markets. Industry heavyweights have warned that the current regulatory framework is driving trading activity to unregulated offshore venues, increasing systemic risk. The regulator is now exploring whether bringing these products onshore under CFTC oversight could enhance market integrity and transparency. For energy traders, this development could reshape how they manage exposure to price swings, as 24/7 trading would allow for immediate reaction to overnight geopolitical events or supply disruptions. Live fuel prices and charts on NowPrice show how markets are currently reacting to the news.
Market participants have until late August to submit comments. The CFTC will then evaluate whether to propose formal rule changes. If approved, the shift to 24/7 trading would represent a major structural change for energy futures markets, which have traditionally operated during set exchange hours. Traders should monitor the comment period closely, as the outcome could influence liquidity patterns, margin requirements, and the competitive landscape between onshore and offshore platforms. The decision will also set a precedent for other commodity derivatives.