The Commodity Futures Trading Commission has requested public comment on two major market structure proposals: perpetual futures contracts and 24/7 trading for traditional energy derivatives. The move follows pressure from large financial firms worried about activity migrating to less regulated offshore platforms.
Perpetual contracts, which have no expiration date, are already popular in crypto markets but remain largely untested in regulated energy markets. The CFTC's inquiry signals a potentially sweeping shift in how oil, natural gas, and related products are traded on US exchanges.
Industry heavyweights have raised alarms about excessive risk building up outside the regulator's purview, as unregulated offshore venues offer around-the-clock access and perpetual products. Some market participants argue that a US framework could bring stability and transparency to these instruments.
Opponents caution that 24/7 futures trading could fragment liquidity, strain after-hours risk management, and increase operational complexity for clearinghouses. The CFTC did not commit to any rulemaking, stating it is gathering information at this stage.
The comment period will remain open for 60 days, during which exchanges, trading firms, and end users are expected to weigh in on both proposals.