CFTC seeks public input on 24/7 energy derivatives trading
In brief
- CFTC formally requested public comments on June 22 on two energy derivatives proposals
- First proposal enables 24/7 trading for standard energy futures without changing settlement
- Second proposal explores perpetual-style contracts for physically delivered commodities like crude oil
- Comment period runs 30 days once published in the Federal Register
What the CFTC is proposing
The first proposal would allow standard futures contracts, including energy futures, to trade 24/7 without changing their existing expiration, delivery, or settlement terms. This mirrors how crypto derivatives already operate on platforms like Coinbase and other exchanges.
The second explores whether perpetual-style contracts should be listed for physically delivered or storable commodities like crude oil. Perpetual contracts are derivatives that never expire, unlike traditional futures which have a set date when they settle. They're the dominant instrument in crypto trading, where platforms process billions of dollars worth of them daily.
The CFTC's formal request follows staff-level requests for comment issued in April 2025 on both 24/7 trading feasibility and perpetual derivatives. The comment period will run for 30 days once the request is published in the Federal Register.
Why this matters for energy markets
If 24/7 energy futures trading becomes reality, traders could respond to overnight developments in real time rather than during limited trading windows. Institutional participants would likely need to invest more heavily in automated trading systems and round-the-clock monitoring infrastructure.
Perpetual contracts on energy commodities could enable traders to maintain positions more efficiently without expiration dates forcing periodic contract rolls. In energy markets, contango and backwardation dynamics make rolling futures expensive and strategically complex—a pain point perpetuals could address.
The regulatory framing
CFTC Chairman Michael S. Selig framed the inquiry around gathering data-driven insights to balance innovation with market integrity. The agency has already moved on crypto derivatives: in May 2026, the CFTC approved crypto perpetual futures products on platforms including Coinbase Derivatives and Kalshi.
The formal request signals the CFTC's willingness to modernize energy derivatives trading, though the outcome depends on public feedback and the agency's assessment of operational and liquidity risks.
