- The CFTC stayed CME’s self-certified 24/7 crude oil futures contract before its planned launch.
- Regulators are reviewing whether round-the-clock futures trading complies with the Commodity Exchange Act and Commission rules.
- The proposal remains under formal review as the CFTC continues accepting public comments on 24/7 futures trading.
The Commodity Futures Trading Commission halted Chicago Mercantile Exchange’s proposed 24/7 crude oil futures contract before its planned launch. According to the CFTC, the action followed CME’s July 8 self-certification filing while the agency continues reviewing round-the-clock futures trading through an ongoing public comment process that began on June 22. The Commission said the stay prevents the contract from launching before its regulatory review concludes.
CFTC Cites Ongoing Regulatory Review
According to the CFTC, the Commission exercised its authority under Regulation 40.2(c) to stay the self-certified contract. As a result, CME cannot introduce the product while regulators assess whether it complies with the Commodity Exchange Act and related Commission rules.
The agency noted that it requested public comments on June 22 regarding 24/7 trading across several futures markets. That review includes crude oil futures and examines whether continuous trading aligns with statutory core principles.
CFTC Chairman Michael S. Selig said the Commission does not apply a single approach to every asset class. He added that each proposal requires an individual legal and regulatory assessment.
CME Filed Under Two Regulatory Paths
Meanwhile, the CFTC explained that exchanges can list contracts through self-certification under Regulation 40.2 or seek formal Commission approval under Regulation 40.3.
According to the agency, CME submitted filings under both procedures. However, the Commission stayed only the self-certification while continuing its review under the 40.3 approval process.
Selig said CME’s decision to pursue self-certification during the Commission’s ongoing examination required regulatory action. He also encouraged exchanges to work with Commission staff before listing new products that raise legal questions.
Commission Review Continues
According to the CFTC, the stay blocks the proposed contract from trading until regulators determine whether it satisfies federal requirements.
The Commission said it will continue conducting a detailed review under its Regulation 40.3 authority. Meanwhile, the public comment period on 24/7 futures trading remains open as the agency evaluates legal and operational considerations across different asset classes.
The CFTC maintained that its review will determine whether the proposed contract meets the Commodity Exchange Act and applicable Commission regulations before any listing proceeds.
