CFTC Stays CME's Self-Certification for 24/7 Crude Oil Futures Trading

The Commodity Futures Trading Commission (CFTC) has announced it will exercise its authority to stay the listing of a contract that would have permitted the Chicago Mercantile Exchange (CME) to launch 24/7 trading on crude oil futures. The regulatory intervention follows CME's July 8 submission to self-certify the round-the-clock contract, which would have allowed trading to begin almost immediately. However, the Commission had previously issued a request for public comment on June 22 regarding the extension of standard futures contracts, including crude oil, to 24/7 trading. Exercising its authority under 17 C.F.R. 40.2(c), the regulator stayed the contract to assess potential risks and ensure consistency with the Commodity Exchange Act (CEA) and Commission regulations. CFTC Chairman Michael S. Selig stated that the agency is actively examining whether 24/7 trading across various asset classes aligns with statutory Core Principles. Selig emphasized that the Commission does not apply a one-size-fits-all model to continuous trading and noted that CME's move to disregard the ongoing regulatory review necessitated the stay, encouraging exchanges to consult with staff prior to listing novel contracts. Under CFTC rules, exchanges can list products either through self-certification under Regulation 40.2 or by seeking formal Commission review and approval under Regulation 40.3. Because CME made simultaneous filings under both routes, the CFTC will conduct a thorough review under its 40.3 authority while maintaining the stay on the 40.2 self-certification, preventing the contracts from listing until full regulatory compliance is established.