The Commodity Futures Trading Commission (CFTC) recently issued a request for comment to gather public input on two related developments in the energy derivatives markets. The agency asks two sets of questions.
The first set of questions concerns the extension of standard futures contracts to 24/7 trading schedule without any change to their fixed expiration. There would be material economic changes to delivery or settlement terms. Energy futures would be included.
The second set of questions concerns the potential listing of perpetual contracts that reference physically delivered or storable energy commodities, such as crude oil.
The commission will use the information and comments to inform its understanding of these developments.
“As registered entities extend trading hours and introduce new contract designs, a clear, data-driven record will help the commission better understand these developments’ implications and impact in the market,” Chairman Michael Selig said. “This request reflects the commission’s commitment to supporting responsible innovation, while preserving the protections against manipulation and market disruption that participants and the public rely on.”
All comments must be in writing and received within 30 days of the request’s publication in the Federal Register.
The CFTC also requests comment on certain derivatives product definitions and interpretive issues.