U.S. CFTC Considers Blocking CME's Around-the-Clock Crude Oil Futures Contract Listing
Miles Bennett
The CFTC is weighing whether to block CME Group's 24/7 crude oil futures contract, concerned that round-the-clock trading could amplify volatility during geopolitical crises — a dispute that exposes the widening regulatory fault line between legacy exchanges and emerging trading venues.
Why is the CFTC pushing back?
A senior CFTC official told Bloomberg the agency was caught off guard by CME's announcement and had not been adequately consulted.
The core concern: 24/7 crude trading could worsen price swings during geopolitical tension. This means → the regulator views round-the-clock access not as a technical upgrade but as a structural change to market risk.
The concern may form grounds for rejection, though a final ruling is still pending.
What exactly is CME trying to launch?
CME announced two new contracts last Thursday: a crude oil futures contract at one-tenth the size of the existing Micro WTI, set for August 30; and a 1-ounce gold futures contract planned for July 26.
Both would trade seven days a week, 24 hours a day, and both require regulatory clearance.
In plain terms = CME wants to take crude and gold from "business-hours markets" to "never-closed markets" — and shrink the contract size so retail traders can join in.
What else is fueling the CME–CFTC tension?
Just one week earlier, CME CEO Terry Duffy publicly criticized the CFTC for greenlighting crypto perpetual futures — perps, contracts with no expiry date — calling it a matter of "serious concern."
The CFTC responded that it would evaluate perps applications on a case-by-case basis and acknowledged that some assets are unsuitable for such products.
This reflects a rare period of open friction: CME is demanding the regulator rein in crypto platforms while the same regulator questions CME's own new product.
Why does this expose a regulatory boundary problem?
The CFTC has already allowed platforms like Kalshi to offer 24/7 trading on commodity-linked products. This means → the same activity — round-the-clock commodity trading — is permitted for newer venues but potentially blocked for the incumbent exchange. Whether the standard is consistent is now the central question.
Meanwhile, crypto platform Hyperliquid saw surging volume in crude-linked perps during the Iran conflict's energy-market shock — and the platform operates outside US regulation.
CME and the Intercontinental Exchange (ICE) have jointly lobbied US regulators to crack down on Hyperliquid. Put simply = the legacy exchanges' argument is: either let us trade around the clock too, or shut down the unregulated competitor — don't block us on both fronts.
Content is for reference only, not financial advice.