CFTC Set to Block CME’s Fast-Track Bid for Round-the-Clock Oil Contract

The US derivatives regulator plans to block CME Group’s attempt to fast track a 24-hour oil futures contract, citing concerns that energy markets aren’t ready to handle round the cclock derivatives trading.

CME Sought Quick Approval for Smaller Contract

CME had announced in June plans to offer 24/7 trading for a new 10-barrel futures contract tied to West Texas Intermediate oil, arguing that investors want to manage positions whenever news breaks. On Wednesday, the exchange filed to self-certify the product, a process that gives the Commodity Futures Trading Commission just one day to step in before the contract goes live. A person familiar with the matter said the CFTC intends to block that self-certification, though a separate application for the same contract, which carries a longer 45-day review, remains under consideration.

Regulator Worried About Market Strain

The CFTC is concerned that fast-tracking a smaller version of the contract would open the door to larger 24/7 offerings, potentially straining the market’s ability to absorb heavy trading volume during hours it has traditionally been closed. CME said it typically uses self-certification for smaller versions of existing products, but noted it also filed through the longer process at the regulator’s request.

Dispute Comes Amid Broader CME-CFTC Tension

The clash follows CME’s lawsuit last month against the CFTC over its approval of perpetual crypto derivatives, contracts that let traders bet on digital asset prices without an expiration date. CME argued the agency’s order lacked public comment or reasoned decision-making, while the CFTC called the suit frivolous. Interest in round the clock oil trading has grown alongside retail demand during recent price swings tied to the US-Iran war, with platforms like Hyperliquid seeing heavy weekend trading activity when traditional oil markets are closed.