The U.S. Commodity Futures Trading Commission (CFTC) is seeking public comment on two areas related to energy derivatives: whether trading should operate on a 24/7 basis for traditional energy futures and related products, and how perpetual contracts should be handled. The request follows concerns raised by industry participants about market structure and risk. According to the reports, some market participants focus on offshore platform activity and argue that continuous trading could increase operational and risk-management challenges. Others also point to the potential for excessive levels of risk in certain trading arrangements.
The CFTC’s process invites stakeholders to submit views and data on the potential benefits and drawbacks of expanding trading hours and on the regulatory approach to perpetuals. The regulator’s outreach indicates it is evaluating how these products and trading patterns affect oversight, including how risks are measured, managed, and mitigated. The comment period is intended to inform any future rulemaking or guidance the agency may consider.
