According to a report by Bloomberg on June 15, the U.S. Commodity Futures Trading Commission (CFTC) is considering whether to block the application from the Chicago Mercantile Exchange Group (CME) to launch around-the-clock crude oil futures contracts; an unnamed senior CFTC official said that 24/7 trading may not be suitable for crude oil, because during periods of heightened geopolitical tension it could further amplify market volatility that is already at extreme levels.
CME 24/7 Crude Oil and Gold Contract Confirmed Specifications
Per CME’s official announcement, the confirmed specifications for the two new products are as follows:
Crude oil contract: A 24/7, around-the-clock trading futures contract linked to West Texas Intermediate (WTI) crude oil; the contract size is one-tenth of the existing Micro WTI futures contract (about 10 barrels); planned listing date: August 30, 2026.
Gold contract: A 1-troy-ounce 24/7 around-the-clock gold futures contract; planned listing date: July 26, 2026.
Both contracts are subject to waiting for the CFTC’s review and final approval, and the planned listing dates will depend on the CFTC’s review outcome.
CFTC Officials’ Key Concerns: Geopolitical Volatility and Regulatory Capacity
According to statements from CFTC officials cited by Bloomberg:
Core concern: The 24/7 trading mechanism may not be suitable for crude oil. During periods of high geopolitical tension, continuous trading without a daily market shutdown could further intensify market volatility that is already at extreme levels.
Additional concern: Bloomberg reports that the CFTC’s concerns also include whether the exchange has the capability to conduct market surveillance for 168 hours nonstop each week; and how to prevent price manipulation and maintain liquidity during non-peak periods.
As of the time of the report, the CFTC had only said it is “considering” whether to block the application, without disclosing any formal decision or review timeline.
Regulatory Background: CFTC Crypto Perpetual Guidance and the CME CEO Criticism Incident
Public statement by CME CEO Terry Duffy (one week ago): CME CEO Terry Duffy previously expressed “serious concerns” about the CFTC’s decision to allow certain platforms to trade crypto-asset perpetual futures.
CFTC’s response position: The CFTC said it will assess perpetual contract applications on a case-by-case basis, and that certain asset classes may not be suitable for perpetual contract products.
CFTC guidance for digital commodity perpetual futures employees: CFTC staff issued no-objection guidance regarding digital commodity perpetual futures, providing a compliance pathway for designated contract markets (DCMs) registered with the U.S. CFTC; this guidance clearly does not apply to offshore, unregulated exchanges.
Frequently Asked Questions
What is the specific legal meaning of the CFTC “considering blocking” CME’s application?
According to Bloomberg’s report, the CFTC is currently in a deliberation stage and has not made a formal decision. “Considering blocking” means the CFTC may reject approval, but the decision has not been announced. Whether the August 30 crude oil contract listing date CME is planning can be realized depends on the CFTC’s final review result.
Is there a causal relationship between CME CEO’s criticism of the CFTC’s crypto perpetual decision and the CFTC’s consideration of blocking CME’s crude oil application?
The report places the two matters in the same context and notes that both have intensified tensions between CME and the CFTC. However, as of now, no official statement has confirmed any direct causal relationship between the CFTC considering blocking CME’s 24/7 crude oil application and CME CEO’s criticism.
Is the CFTC’s employee guidance on digital commodity perpetual contracts binding on CME’s crude oil application?
Based on available information, the CFTC’s employee guidance provides a compliance pathway for DCMs registered with the U.S. CFTC, but the CFTC has also clearly stated it will assess applications on a case-by-case basis and that some asset classes may not be suitable for 24/7 trading. With these two policy positions in place, whether CME’s 24/7 crude oil application will be approved still awaits the CFTC’s formal ruling.
