CME Group’s newly launched 24/7 gold futures successfully completed their first weekend of trading, recording nearly 15,000 contracts worth approximately $60 million in notional value. The continuous trading launch follows CME’s rollout of round-the-clock crypto futures in late May. Meanwhile, the CFTC blocked CME’s similar attempt with a 10-barrel WTI crude oil contract just one day before its scheduled July 10 debut, with Chairman Michael Selig criticizing the exchange’s self-certification approach as “wholly inappropriate.”
The divergent regulatory treatment appears linked to underlying market characteristics. Industry experts note continuous trading gains approval where spot markets already operate 24/7, but faces resistance for physically delivered commodities. The CFTC extended its public comment period on energy perpetuals until August 26, examining whether standard futures can run continuously and whether perpetuals suit physically storable commodities. Critics argue perpetual structures lack the fixed forward pricing that hedgers require for budgeting purposes.
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Traders should monitor the August 26 CFTC deadline closely, as the regulatory stance on energy perpetuals will likely determine which commodity futures can expand to continuous trading schedules.
Source: Finance Magnates