US derivatives regulators want help deciding how “crypto‑style” markets should cross into oil and gas. The Commodity Futures Trading Commission (CFTC) is seeking public input on perpetual contracts and 24/7 trading in traditional energy derivatives, following warnings from industry heavyweights about offshore platforms and rising risk.
In a new request for comment, the CFTC seeks feedback on two ideas that could reshape parts of the energy market. First, it asks whether standard energy futures, such as crude oil contracts, should move to a full 24/7 trading schedule without changing their fixed expiries. Second, it asks how exchanges should handle perpetual contracts referencing physically delivered or storable commodities such as oil and natural gas.
The agency notes that perpetuals, which never expire and continuously roll, already dominate in crypto but still represent new ground for physical energy markets. It wants details on how funding rates, margining, and position limits would work when contracts are tied to real supply chains and storage. Comments are open for 30 days after the notice hits the Federal Register, and the CFTC says it will use the responses to “inform its understanding” before deciding on any next steps.
Why Industry Leaders Are Worried
The move follows a wave of letters from major trade bodies and banks warning against rushing into 24/7 energy trading. Groups like FIA and ISDA have stressed that continuous markets create serious operational, staffing, collateral, and surveillance challenges for traditional firms.
FIA said in a March response that it does not support extending trading and clearing in CFTC‑regulated derivatives markets to a 24/7 basis until regulators systematically identify, assess, and resolve the key issues.
Separately, the CFTC’s own staff has warned that nonstop trading can thin out liquidity in off-hours and increase volatility, giving manipulators more room to move prices. These worries grow when products track physical energy markets that still run on weekday business schedules and rely on batch processes for collateral and settlement.
As one CFTC advisory put it, “because of inherent differences between underlying markets, switching to 24/7 trading and clearing may not currently be suitable for all asset classes.”
Energy companies and banks are also watching offshore crypto platforms, which already list perpetuals on crude benchmarks and other commodities with lighter oversight. Some fear that if US rules remain too rigid, more risk will shift to those venues rather than stay on regulated exchanges.
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