CFTC energy perps moved into public comment on June 22 after the regulator issued a 22-page request for comment on perpetual contracts tied to crude oil and other storable energy commodities. The document also asks about extending standard futures to 24/7 trading. The agency listed 67 questions and did not give a timeline for any rulemaking.
The move came less than a month after the CFTC approved the first regulated bitcoin perpetual futures in the United States on May 29. Kraken then launched its own CFTC-regulated perpetuals on June 15. However, the new request shows the agency sees different issues in energy markets.
Why CFTC Energy Perps Raise New Issues
The CFTC said bitcoin perpetuals could work because bitcoin has a deep and continuous spot market that provides a reference price at all hours. That price supports the funding mechanism that keeps a perpetual contract close to the underlying market. By contrast, the source article said crude oil lacks that kind of nonstop cash market.
WTI and Brent trade in set windows, and market prices are assessed rather than traded around the clock. As a result, the CFTC asked how a funding rate would work when the reference market is shut. It also asked who would manage margin calls on a Saturday when Fedwire is not operating.
The request also asks whether weekend moves in a perpetual contract could affect benchmark prices used by commercial hedgers on Monday. In addition, the document revisits April 2020, when WTI settled at negative $37.63 a barrel. The agency asked how a no-expiry contract would function if prices turned negative.
Settlement and Collateral Questions Remain
The request for comment also highlights settlement issues for any product that trades all week. The CFTC asked whether tokenised assets or stablecoins might need to serve as collateral during weekend trading, when traditional payment rails are unavailable. That point matters for brokers building margin systems for round-the-clock products.
Meanwhile, CME Group is suing the CFTC over the earlier perpetual approval. CME argues those contracts meet the Dodd-Frank definition of a swap and should face stricter rules.
CFTC Chairman Mike Selig said the agency supports responsible innovation while keeping protections against manipulation and market disruption. The public comment window for energy perpetuals is set to close about 30 days after publication in the Federal Register.
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