The US Commodity Futures Trading Commission is weighing whether to block CME Group Inc.'s attempt to introduce a 24/7 oil futures contract, according to Bloomberg. The move ratchets up friction between the Chicago-based exchange operator and its federal regulator.
At stake is whether continuous electronic trading could disrupt overnight price discovery and increase systemic risk in global crude markets. The CFTC has historically scrutinized proposals that expand trading hours for physically delivered commodities.
CME's bid would allow traders to buy and sell oil contracts around the clock, breaking the current restricted schedule. The regulator's internal review is ongoing, with no public timeline for a final decision.
A block could push liquidity to competing venues such as ICE or offshore platforms, potentially weakening CME's grip on crude futures. Market participants worry about fragmentation if the product is delayed or rejected.
Critics argue the CFTC's approach risks stifling innovation and driving business overseas. Proponents of the review counter that more oversight is needed to prevent flash crashes during low-liquidity overnight hours.