4 hours ago
5
PROTECT YOURSELF with Orgo-Life® QUANTUM TECHNOLOGY
Orgo-Life the new way to the future Advertising by AdpathwayArticle content
(Bloomberg) — The US Commodity Futures Trading Commission is considering whether to block CME Group Inc.’s bid to launch a round-the-clock oil contract, heightening tensions between the market stalwart and its regulator.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
CME Group Inc. announced on Thursday that it would debut 24-hour, seven-days-a-week trading in some crude and gold futures contracts. The news caught the US derivatives regulator by surprise, a senior agency official said, who asked not to be identified discussing confidential deliberations.
Article content
Article content
Article content
Round-the-clock trading may not be suitable for crude oil because it could worsen already extreme volatility during periods of geopolitical stress, the official said, adding those concerns may justify withholding approval for the contract.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
A CME spokesperson declined to comment.
Article content
The new oil-linked contract, which would be one-tenth the size of the existing Micro WTI futures contract, is slated for release on Aug. 30. The exchange wants to start round-the-clock trading in 1-ounce gold futures on July 26. Both products require regulatory review.
Article content
The exchange’s move comes a week after CME Chief Executive Officer Terry Duffy voiced “grave concerns” about the CFTC clearing a path for trading in the first perpetual futures, or “perps,” tied to cryptocurrencies. These contracts allow traders to take leveraged positions on an asset’s future price without the expiration dates that govern traditional futures contracts.
Article content
At the time, the CFTC said it would evaluate perpetual futures applications on a case-by-case basis and that some assets were unsuitable for the product. The agency has previously tolerated 24/7 trading in commodity-linked products on platforms like Kalshi.
Article content
Perpetual futures are the primary trading instrument on Hyperliquid, a crypto platform that has seen volumes in oil-linked products surge as the Iran war roils energy markets.
Article content
Bloomberg previously reported that Intercontinental Exchange Inc. and CME were pressing US regulators to rein in the unregulated trading venue.
Article content
English (US) · 
French (CA) · 
French (FR) ·